Final Exam Review Maria Segovia purchased 100 shares of JAX stock for $30 per share and sold this same stock three years later for $35 per share. She paid commissions of $50 when she purchased the stock and $45 when she sold the stock. Dividends of $2 per share were paid each year. Use this information to answer the following three questions. 1. The total dollar return on this stock transaction wasSell price=35*100=3,500-45= 3,455Dividends=2*100*3=600Purchase price=30*100=3,000+50=3,0503,455+600-3,050=a. $405b. $3455c. $605d. $10052. What is your total cumulative return (in percent) over the 3-year period?((Sell price + dividends)/(purchase price) -1 (3,455+600) / 3,050= 1.32 – 1 a. 32.95%b. 19.84%c. 13.28%d. 44.50%3. What is your average annual percentage return over the three year period?PV= -3050FV=3455N=3 yearsPmt= 200 YEARLY!!!!I=a. 23.2%b. 11.6%c. 10.5%d. 9.3%4. Assume you are in the 28% marginal tax bracket, dividends and long term capital gains will be subject to a 15% tax rate. What is your after tax average annual return?Capital gain= 3455-3050=405 * .15=60.75 200(1-.15)=170a. 10.5%b. 9.02%c. 5.5%d. 4.3%5. If inflation averaged 3.4% per year over the three year period, the average annual after-tax real rate of return would be?1+.0902/1+.034=1.0544-1=5.4a. 5.4%b. 6.9%c. 2.0%d. 0.87%BondsCur YldVol Close Net ChgMobile 8s33 8.2 53 +3 1/8Use the above information to answer the next five questions.22. What year does the bond mature?a. 2033b. 2008c. 2009d. 204023. What is the bond’s annual coupon payment?a. $32b. $80c. $8d. $8224. What is the bond’s closing price?a. $970.00b. $975.61c. $1,000.00d. $1,100.1325. What was yesterday’s closing price?a. $1,006.86b. $1,001.25c. $938.75d. $944.3626. What is the bond’s YTM?8.2%Use the above information to answer the next few questions52W 52W Yield Vol Net Ticker Div % P/E 00s High Low Close Chg51.25 27.69 ROK ? 2.15 14.5 6412 47.99 47.00 47.54 +0.2428. What is the lowest the stock has sold for in the past year?a. 47.00 b. 51.25c. 47.99d. 27.6929. What is the closing price of ROK?a. 47.00 b. 51.25c. 47.99d. 47.5430. What is the annual dividend payment per share?a. 2.15b. 1.02c. 102.21d. 5.0031. What was the previous day’s closing price?a. $47.78b. $47.30c. $47.24d. $51.4932. What is the EPS for ROK?a. $4.77b. $4.30c. $3.28d. $3.5333. Solely looking at ROK’s P/E ratio, what does this possibly tell you about the price of the stock?a. ROK stock is undervaluedb. ROK stock is valued fairly c. ROK stock is overvaluedd. ROK stock may be subject to a speculative bubble34. Google has a beta of 0.98. If the market as a whole goes up 15 percent, we would expectGoogle's market value to goa. up 15 percent.b. down 15 percent.c. up 14.70 percent.d. down 14.70 percent.35. A taxable bond would have to yield ______ percent to equal a 5.8 percent municipal bond for someone with a 31 percent marginal tax rate.a. 18.7b. 12.2c. 8.4d.
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