Last year Marla purchased 100 shares of stocks for $8 per share. She paid a flat $75 to purchase the shares. Since making her purchase, she has received $200 in dividends. Marla is concerned that the stock price will fall below its current FMV of $7. Calculate her holding-period return if she sells today and pays a $75 commission.

Swarn bought 200 shares of a stock for $36 per share. He paid $245 in trading commissions. He received dividends in the amounts of $98, $156, and $300 over the last three years, respectively. Assuming that Swarn is in the 15% marginal tax bracket for capital gains and dividends, what is his holding period return if he sells all of the shares at $40 each with a $245 trading commission? What is Swarn's tax-adjusted holding period rate of return?

Answer rating: 100% (QA)

For Marla Number of shares purchased is 100 8 per share Initial Posit... View the full answer