Please help solving the following. 16) You have purchased 200 shares of ABC stoc

Question

Please help solving the following. 16) You have purchased 200 shares of ABC stock for $62.75 per share. One year later you have received $2.20 in dividends per share and the stock is now worth $65.90 per share. What is your total return on this stock since its purchase? (Show your work) Answer: $ 17) You have paid $9,980 for a treasury bill that matures in two months. What is your annual rate of return for this investment? 18) A common stock pays an annual dividend per share of $2.10. The risk free rate is 7% and the risk premium for this stock is 4%. If the annual dividend is expected to remain at $2.10 per share, what is the value of the stock. (Round to two decimal places.) 19) You purchase shares in ABC mutual funs for $61.15 on 11-31-2016. During the next twelve months you receive dividends totaling $1.29 per share. On 11-31-2017 the NAV of ABC tual fund is $62.74. What is the percentage return you made on this investment for this twelve month period. 20) Wingo Company has a balance sheet with $70 million in assets, $45 million in liabilities, and $25 million in common shareholders equity. It has one million in common shares outstanding. The replacement cost of its assets is $85 million and the market share price of its stock is $49. What is its book value per share?

Explanation / Answer

16.

Total cost = 200*62.75 = 12550

Total dividend received = 2.2*200 = 440

Selling price = 200*65.9 = 13180

Total return = Selling price + dividend received - total cost

Total return = 13180 + 440 - 12550 = 1070

Return in percentage = 1070/12550 = 0.0853 = 8.53%

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