Suppose you buy 100 shares of 3M at $86 a share and sell all shares one year later for $99 a share. During the year, you earned a dividend of $2.10 a share. What was your rate of return? Report your answer in percentages with one decimal point
What will be an ideal response?
The rate of return is $2.10/$86 + ($99 - $86)/$86 = 17.6%.
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Compared to many other countries, the United States has: a. fewer banks, with assets distributed more evenly
b. fewer commercial banks, with assets concentrated in a few large banks. c. more banks, with assets concentrated in a few large banks. d. more commercial banks, with deposits widely distributed among the banks. e. more commercial banks, with deposits concentrated in a few large banks.
Explain how compensation plans like piece rate payment, capitation fees, and hourly payment options resolve the principal/agent problem faced by employers
Economies of scope often occur because
A) a production facility can be used to produce more than one product. B) it forces firms to search for economies of scale. C) it enhances the ability to find market niches. D) managers are able to multi-task in product markets
Which of the following would provide a reasonable benchmark for how much you should pay monthly into a "real world" savings account?
A) Sum your unexpected expenditures over the last 12 months, divide this figure by 12, and allocate this amount into the savings account regularly. B) Sum your unexpected expenditures during the last month, and if this total is greater than the additional amount you can borrow on your credit cards, you do not need a "real world" savings account. C) Sum your unexpected expenditures last month and allocate this amount into the savings account regularly. D) Sum your unexpected expenditures over the last 12 months, divide this figure by 12, and if this total is less than the additional amount you can borrow on your credit cards, you do not need a "real world" savings account.