you bought 200 shares of Amazon when they issued their IPO in May 1997 for $18/share and then sold all 200 shares today for $3,284/share. What is the Cost Basis for calculating your Capital Gain and Return On If Investment (ROI) O $3,600 O $3,266 O $653,200 O $656,800
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- Suppose we purchase a share of IBM for $120 and hold for 1 year. We receive a dividend of $4 and then sell the share for $130. What is the holding period return? 15.00% 9.50% 11.67% 6.95%suppose you manage a $200,000 company that consist of the following invest: A $50,000 beta .095 B $50,000 beta 0.80 C $50,000 beta 1.00 D $50,000 beta 1.20 what is holding of company beta?Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)
- Suppose Buyer Company in the problem above had invested $2,400 directly in Target’s common stock one year ago at $40 per share and sold it today at $50 per share. What would the Buyer Company’s dollar profit or loss be?You purchased a share of stock last year for $50. You collected a dividend of $1 and sold it for $52. What was the capital gains yield you earned? Group of answer choices 2.00% 6.00% 4.00% 12.00%PLEASE START FROM SECTION B Use the following information about SV Inc. to calculate the company’s Cost of Capital. The stock of SV Inc. sells for $50, and last year’s dividend was $2.10. A flotation cost of 10% would be required to issue new common stock. SVs’ preferred stock pays a dividend of $3.30 per share, and new preferred could be sold at a price to net the company $30 per share. Security analysts are projecting that the common dividend will grow at a rate of 7% a year. The firm can issue additional long-term debt at an interest rate (or a before-tax cost) of 10%, and its marginal tax rate is 35%. The market risk premium is 6%, the risk-free rate is 6.5%, and Supreme Ventures’ beta is 0.83. In its cost-of-capital calculations, SV Inc. uses a target capital structure with 45% debt, 5% preferred stock, and 50% common equity. REQUIRED: Section A Calculate the cost of each capital component: the after-tax cost of debt the cost of preferred stock (including flotation costs)…
- Help Save & Exit Subm Six months ago, you purchased 1,900 shares of ABC stock for $25.24 a share. You have received dividend payments equal to $.40 a share. Today, you sold all of your shares for $27.52 a share. What is your total dollar return on this investment? Multiple Choice $10,830 $4,332 $10,184 $760 $5,092 Next > 10 of 40 < grevAnswer these two problems with a complete solution.1. You own 25 shares of BDO stock, par value P800.00. If the corporation declares a 5.75% dividend, what is your total dividend that should get?2. If you own a share of stock that costs P1890 and pays an annual dividend of P10.50, what is the rate of income?1. An investor purchased a stock one year ago for $58.00. It paid an annual cash dividend of $4.38 and is now worth $65.01. What total return did the investor earn? Would the investor have experienced a capital gain? Explain. Review Only Click the icon to see the Worked Solution. The investor would experience (1) in the amount of $ (Choose from the drop-down menu and round to the nearest cent.) The total return earned by the investor is $ (Round to nearest cent.) The total percentage return by the investor %. (Round to two decimal points.) (1) a capital gain a capital loss neither
- You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $29? (Ignore any dividends.) Select one: а. 20% b. 15% C. 6.67% d. 10%You are looking to purchase Company A. Your projections for the EBITDA of Company A are as follows: EBITDA $21.51 Year 1 $2.0 O $19.77 $21.78 Your cost of capital is 20%. Your investment banker shows you the EBITDA multiples for the following comparable companies: Company x 5.0x Company y 5.50x Company z 6.0x Year 2 $3.0 Given the above information what is the price that you would like to offer to Company A shareholders? Not enough information Year 3 $3.5 None of the above Year 4 $4.0 Year 5 $5.0You were recently hired by MSS company to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $95.00; g = 6.00% (constant); and F = 7.00%. What is the cost of equity raised by selling new common stock? 7.08% 7.98% 8.18% 8.29% 7.57%