I want assistance to solve some problems from book Corporate Investment Analysis – in FINANCE. Book from: Reilly, F. & brown, K. (2009). Investment Analysis and Portfolio Management (9th ed.). Mason, OH: South-Western/ Cengage Learning. Book used by Strayer University.
Question 1: On February 1, you bought 100 shares of stock in the Francesca Corporation for $34 a share and a year later you sold it for $39 a share. During the year, you received a cash dividend of $1.50 a share. Compute your HPR and HPY on this Francesca stock investment.
Question 2: On august 15, you purchased 100 shares of stock in the Cara Cotton Company at $65 a share and a year later you sold it for $61 a share. During the year, you received dividends of $3 a share. Compute your HPR and HPY on your investment in Cara Cotton.
Question 3: You are considering acquiring shares of common stock in the Madison Beer Corporation. Your rate of return expectations are as follows:
MADISON BEER CORP.
Possible Rate of Return Probability
- 0.10 0.30
0.00 0.10
0.10 0.30
0.25 0.30
Compute the expected return [ E (Ri) ] on your investment in Madison Beer.