You purchased a share of stock for 8745 twelve years ago


Part A) You purchased a share of stock for $87.45 twelve years ago and just sold it today for $115.83. No dividends were paid out over the twelve years but you did receive an accumulated dividend of $35.70 when you sold the stock. What is your (a) Dollar gain or loss; and (b) HPR?

A. $28.38; 24.5%

B. $64.08; 73.3%

C. $64.08; 55.3%

D. $203.28; 23.2%

Part B) You purchased a share of stock for $87.45 twelve years ago and just sold it today for $115.83. No dividends were paid out over the twelve years but you did receive an accumulated dividend of $35.70 when you sold the stock. What is your (a) Simple Annual Return; and Compounded Annual Return?

A. 4.7%; 6.1%

B. 5.8%; 3.4%

C. 3.4%; 5.8%

D. 6.1%; 4.7%

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Financial Management: You purchased a share of stock for 8745 twelve years ago
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