HOLDING PERIOD RETURN: 1. You purchased 1492.50 shares of Gimwraxx...

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Accounting

HOLDING PERIOD RETURN:

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1. You purchased 1492.50 shares of Gimwraxx stock for $104.44. You sold the stock 316.5 days later for $120.99. During that holding period, a dividend of $3.25 was paid. What is your holding period return (HPR)?

2. Would your holding period return go up or down if Gimwraxx paid an additional dividend after the holding period?

3. Your holding period return was 15.50% for your latest investment in Gimwraxx stock. You purchased the stock at $120 and received a $5 dividend during your holding period. What price did you sell the stock for?

4. What is the difference between the Total Return formulas & the Holding Period Return formulas?

HOLDING PERIOD RETURN: HPR - Ps - Pg +Div . where Ps = Sale Price Ps= Buy Price Div=Cash Dividend

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