1) What is the holding period return to an investor who bought 100 shares of Charter Oil nine months ago for $36 a share, received two $50 dividend checks, and sold the stock today at $38 a share?
Calculate holding period return
| a |
Number of shares |
|
|
100 |
| b |
Price per share of Charter Oil |
|
$ 36.00 |
| c |
Investment (a x b) |
|
|
$ 3,600.00 |
| d |
Dividends ($50 x 2) |
|
|
$ 100.00 |
| e |
Selling Price per share |
|
$ 38.00 |
| f |
Total amount received (e x a) |
|
$ 3,800.00 |
| g |
Holding period (Months) |
|
9.00 |
| h |
Holding period return |
|
8.33% |
| |
(d + f - c)/c x 100 |
|
|
|