practiceq6(4B)

45 5025 050 5025 02328 or 2328 b find the annual

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Unformatted text preview: al return = (62.45 – 50.25 – 0.50) ÷ 50.25 = 0.2328 or 23.28% b) Find the annual return. (1.5 points) 1 /Y Ê Aˆ Annual return = Á ˜ ËP¯ Ê 62.45 - 0.5 ˆ -1 = Á ˜ Ë 50.25 ¯ 1 8 - 1 = 0.0265 or 2.65% per year 4.) Disney stock pays a dividend of 0.65 per share. If you own 2500 shares of Disney stock, what is your annual dividend payment? (2 points) Annual dividend payment = # of shares ¥ dividend per share = 2500 ¥ 0.65 = $1625 † nY ÈÊ ˘ APR ˆ ˜ - 1˙ Í Á1 + n¯ ˙ A = PMT ¥ Í Ë Í ˙ APR Í ˙ n Í ˙ Î ˚ ( A - P) Total Re turn = P 1 Ê A ˆY Annual Re turn = Á ˜ - 1 ËP¯...
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This note was uploaded on 03/12/2013 for the course MGF 1107 taught by Professor Wooland during the Fall '08 term at FSU.

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