Jonathan purchased some corporate stock 8 years ago for $12,000. He received quarterly dividends of $225 at the end of each quarter for the first 5 years, nothing for the sixth year, and $250 at the end of each quarter for the last 2 years. Immediately after receiving the last quarterly dividend, Jonathan sold the stock for $15,385. What was his annual rate of return? (IRR) Round your rate to the nearest tenth of a percent.
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- Steven purchased 1000 shares of a certain stock for $26,800 (including commissions). He sold the shares 4 years later and received $34,200 after deducting commissions. Find the effective annual rate of return on his investment over the 4-year period. (Round your answer to two decimal places.) %/yearSteven purchased 1000 shares of a certain stock for $25,900 (including commissions). He sold the shares 2 years later and received $33,100 after deducting commissions. Find the effective annual rate of return on his investment over the 2-year period. (Round your answer to two decimal places.)Rafael purchased 100 shares of corporate stock 7 years ago for $32 a share plus brokerage fees totaling $90. He received quarterly dividends of 40 cents per share. Nathan just sold the stock, immediately after receiving the 28th quarterly dividend, for $41.42 per share less brokerage fees totaling $125. Calculate Rafael's rate of return.
- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $24,000 for 980 shares of Malti Company’s common stock. She received a $823 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $22,000. Kathy would like to earn a return of at least 10% on all of her investments. She is not sure whether the Malti Company stock provide a 10% return and would like some help with the necessary computations. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 10% return?Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $23,000 for 500 shares of Malti Company's common stock. She received a $460 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $30,000. Kathy would like to earn a return of at least 13% on all of her investments. She is not sure whether the Malti Company stock provide a 13% return and would like some help with the necessary computations. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 13% return? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the net present value that Kathy earned on her investment…What is Rate of Return? Adam is a retail investor and decides to purchase 10 shares of Company A at a per-unit price of $20. Adam holds onto shares of Company A for two years. In that time frame, Company A paid yearly dividends of $1 per share. After holding them for two years, Adam decides to sell all 10 shares of Company A at an ex-dividend price of $25. Adam would like to determine the rate of return during the two years he owned the shares.
- Alex purchases 100 stocks in a company that pay dividends of $10 every year for the next 5 years. However, the prevailing interest rates at which he can discount future earnings changes from 4% in the first 3 years to 6% in the next 2 years. What is the present value of the dividend income?Julio purchased a stock one year ago for $27. The stock is now worth $32, and the total return Julio received for owning the stock was 18.5 %. What is the dollar amount of dividends that he received for owning the stock during the year? Round your final answer to nearest whole dollar.Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return she is earning. For example, three years ago she paid $17,000 for 910 shares of Malti Company's common stock. She received a cash dividend of $701 on the stock at the end of each year for three years. At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 9% on all of her investments. She is not sure whether the Malti Company stock provides a 9% return and would like some help with the necessary computations. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 9% return? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the net present value Kathy earned on her investment in Malti…
- Last year Vivienne bought 100 shares of Holding Corporation common stock for $43 per share. During the year he received dividends of $1.30 per share. The stock is currently selling for $50 per share. What rate of return did Vivienne earn over the year?Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate ofreturn that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company’s common stock. She received a $420 cash dividend on the stock at the end of each year for three years.At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14%on all of her investments. She is not sure whether the Malti Company stock provided a 14% return andwould like some help with the necessary computations.Required:(Ignore income taxes.) Using the net present value method, determine whether or not the Malti Companystock provided a 14% return. Use the general format illustrated in Exhibit 12–2 and round all computationsto the nearest whole dollar.Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return she is earning. For example, three years ago she paid $19,000 for 930 shares of Malti Company's common stock. She received a cash dividend of $735 on the stock at the end of each year for three years. At the end of three years, she sold the stock for $22,000. Kathy would like to earn a return of at least 17% on all of her investments. She is not sure whether the Malti Company stock provides a 17% return and would like some help with the necessary computations. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 17% return? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the net present value Kathy earned on her investment in Malti…