1 .You purchased 100 shares in a real estate investment trust for $30 a share....

50.1K

Verified Solution

Question

Finance

1 .You purchased 100 shares in a real estate investment trust for $30 a share. The trust paid the following annual dividends:

Year Dividend
1 $ 2.10
2 2.53
3 1.45
4 2.70
  1. What was your annualized return on the investment if you sell the stock for $30? Round your answer to the nearest whole number.
  2. What was your annualized return on the investment if you sell the stock for $40? Round your answer to the nearest whole number.

2.

You invest $2,800 in stock A and $2,800 in stock B. If you earn 11 percent on stock A and 6 percent on stock B and hold each security for 13 years, what are the terminal values for each investment? Round your answers to the nearest cent.

Stock A: $

Stock B: $

If you continue to hold each security and earn the same returns for 25 years, how much more will stock A generate than stock B over the entire time period? (When you invest for retirement, you should think about the impact of returns over time.) Round your answer to the nearest cent.

$

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students