Ask Question
BusinessBusiness
3 October, 13:03

George Wilson purchased Bright Light Industries common stock for $47.50 on January 31, 2016. The firm paid dividends of $1.10 during the last 12 months. George sold the stock today (January 30, 2017) for $54.00. What is George's holding period return? 14.00% 11.00% 16.00% 19.00%

+4
Answers (1)
  1. 3 October, 13:04
    0
    16%

    Explanation:

    The holding period return is a measure of the aggregate returns from holding an investment over a period of time. Returns include an appreciation in the value of the investment plus other gains such as dividends. The formula for calculating the holding period is as follows.

    Holding Period return = Income + (Vn - Vo)

    Vo

    Where

    Income represents interests, dividends and other earning

    Vn is the ending value of the investment

    Vo is the beginning value of the investment

    For George, Holding period return will be

    HPR = 1.10 + ($54.0 - $47.50)

    $47.50

    HPR = $1.10 + $ 6.5

    $47.5

    HPR = $7.6/$47.5 x 100

    HPR=0.16 x 100

    HPR = 16%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “George Wilson purchased Bright Light Industries common stock for $47.50 on January 31, 2016. The firm paid dividends of $1.10 during the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR decision rule, is this a good project if the required return is 8 percent?
Answers (1)
Personal Finance What is a motive?
Answers (1)
Imagine that your boss is someone whom you and your coworkers have very little respect for, but you and others continue to do what s/he asks because s/he has control over allocating year-end bonuses, promotions, etc.
Answers (1)
Ten percent of customers who walk into a golf store purchase a golf club and 30% of customers purchase golf balls. six percent of customers purchase both clubs and balls. what is the percentage of customers who do not purchase clubs or balls?
Answers (1)
Which of the following was identified in the textbook as a disadvantage of participating in strategic alliances and joint ventures? a. Gain access to a foreign market Neutralizing or blocking competitors b.
Answers (1)
New Questions in Business
a risk averse investor, which of the following four otherwise identical investment would you prefer? A. Security W, which exhibits a standard deviation of 2% and offers an average return of 12%. B.
Answers (1)
n a company's merit pay program, an individual's compa-ratio represents the individual's pay relative to company's average pay for that position. the individual's worth versus that of others in the organization.
Answers (1)
Some interview questions are designed to rattle you to see how you deal with stress. True or false.
Answers (2)
Organizational culture consists of three levels: Select one: a. assumptions, orientations, and beliefs. b. beliefs, values, and artifacts. c. artifacts, assumptions, and beliefs. d. assumptions, artifacts, and values.
Answers (1)
What term refers to a set amount of money kept in the cash register to make change with? A. Excess cash B. Standard cash stock C. Cash drop D. Cash float
Answers (1)
Home » Business » George Wilson purchased Bright Light Industries common stock for $47.50 on January 31, 2016. The firm paid dividends of $1.10 during the last 12 months. George sold the stock today (January 30, 2017) for $54.00.
Sign Up Forgot Password?