Question: (Total for Question: 10 marks) Question 3 (10 marks) The table below sets out four corporate events in relation to a particular firm. Each perio
(Total for Question: 10 marks) Question 3 (10 marks) The table below sets out four corporate events in relation to a particular firm. Each perio consists of one month. Period Corporate Event Price(5) Price status 3.00 3.12 2.64 1.35 Ex-split 1.20 Ex-dividend Ex-bonus $0.30 per share dividend 1 for 5 bonus 2 for 1 split ?for lorights issue (a $0.50 subscription price 4 Ex-issue a) Calculate the holding period returns for periods 1, 2, 3 and 4, as well as the average (5 marks) calculated in (a) (2 marks) c) If you bought 500 shares at the end of period 2 (after the bonus issue), how many shares holding period return. b) Calculate the geometric monthly return of the 4 holding period returns above. f you bought 500 shares at the end of period 2 (after the bonus issue), how many shares (3 marks) would you have at the end of period 4? (Total for Question: 10 marks)
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