Palm Sunday 106 East rthodox East 113/252 120/245 You bought a share of 5.7o per
ID: 3220954 • Letter: P
Question
Palm Sunday 106 East rthodox East 113/252 120/245 You bought a share of 5.7o percent preferred stock for $93.18 last year. The market price for your stock is now $95.67. What is your total return for last year (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16) Total return for last year References worksheet Learning Objective: 10-01 Calculate the return on an investment. Difficulty: 1 Section: 10.1 Returns Basic 12. Award: 6.66 points ilmrk that had returns of 13.2 percent, 6 pero a nant and T the average retuExplanation / Answer
It's the return on your total position PLUS the dividend received over the year divided by initial investment.
In this case: (95.67-93.18+5.70)/93.18=0.0878944
total return for the last year 8.789%
Note: the 5 is the coupon payment on $100 face value of preferred stock (Check if there is a face/par value in the question, if not, usually the face value is $100. If there is, multiply the face value by 0.057 and that's the coupon instead of the 5.7 I have used.
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