104) A
EAC = $3,200,000/{[1 − (1/1.205)]/.20}
EAC = $1,070,015
QFinancial break-even = ($485,000 + 1,070,015)/($40,000 − 18,000)
QFinancial break-even = 71 units
105) E
EAC = $2,300,000/{[1 − (1/1.205)]/.20}
EAC = $769,073
QFinancial break-even = ($425,000 + 769,073)/($36,000 − 22,000)
QFinancial break-even = 85 units
Student name:
1) You purchased 240 shares of stock at a price of $37.92 per share. Over the last year, you
have received total dividend income of $255. What is the dividend yield?
1)
A) 2.8%
B) 16.1%
C) 7.1%
D) 6.7%
E) 1.1%
Question Details
Difficulty : 1 Basic
Topic : Dollar and percentage returns
Learning Objective : 12-01 Calculate the return on an investment.
Section : 12.1 Returns
AACSB : Analytical Thinking
Bloom's : Understand
,2) Six months ago, you purchased 1,800 shares of ABC stock for $38.06 a share. You have
received dividend payments equal to $.60 a share. Today, you sold all of your shares for $40.34 a
share. What is your total dollar return on this investment?
2)
A) $4,104
B) $6,840
C) $1,080
D) $10,368
E) $5,184
Question Details
Difficulty : 1 Basic
Topic : Dollar and percentage returns
Learning Objective : 12-01 Calculate the return on an investment.
Section : 12.1 Returns
AACSB : Analytical Thinking
Bloom's : Understand
3) Last year, you purchased a stock at a price of $82.00 a share. Over the course of the year,
you received $3.30 per share in dividends and inflation averaged 2.7 percent. Today, you sold
your shares for $86.70 a share. What is your approximate real rate of return on this investment?
3)
A) 7.1%
B) 12.5%
C) 8.4%
D) 3.0%
E) 9.8%
,Question Details
Difficulty : 1 Basic
Topic : Nominal and real returns
Learning Objective : 12-01 Calculate the return on an investment.
Section : 12.2 The Historical Record
AACSB : Analytical Thinking
Bloom's : Understand
4) What are the arithmetic and geometric average returns for a stock with annual returns of
14 percent, 9 percent, −2 percent, and 15 percent?
4)
A) 8.78%; 9.00%
B) 9.88%; 9.00%
C) 9.00%; 9.88%
D) 9.00%; 8.78%
E) 9.88%; 8.78%
Question Details
Difficulty : 1 Basic
Topic : Arithmetic and geometric returns
Learning Objective : 12-01 Calculate the return on an investment.
AACSB : Analytical Thinking
Bloom's : Understand
Section : 12.5 More about Average Returns
5) You own a stock that had returns of 12.13 percent, −16.16 percent,21.34 percent, and
19.81 percent over the past four years. What was the arithmetic average return for this stock?
5)
, A) 9.65%
B) 8.12%
C) 10.05%
D) 8.70%
E) 9.28%
Question Details
Difficulty : 1 Basic
Topic : Arithmetic and geometric returns
Learning Objective : 12-01 Calculate the return on an investment.
AACSB : Analytical Thinking
Bloom's : Understand
Section : 12.5 More about Average Returns
6) You own a stock that had returns of 12.18 percent, −16.82 percent,21.78 percent, 25.52
percent, and 9.48 percent over the past five years. What was the arithmetic average return for this
stock?
6)
A) 9.88%
B) 11.30%
C) 10.43%
D) 10.85%
E) 9.32%
Question Details
Difficulty : 1 Basic
Topic : Arithmetic and geometric returns
Learning Objective : 12-01 Calculate the return on an investment.
AACSB : Analytical Thinking
Bloom's : Understand
Section : 12.5 More about Average Returns
EAC = $3,200,000/{[1 − (1/1.205)]/.20}
EAC = $1,070,015
QFinancial break-even = ($485,000 + 1,070,015)/($40,000 − 18,000)
QFinancial break-even = 71 units
105) E
EAC = $2,300,000/{[1 − (1/1.205)]/.20}
EAC = $769,073
QFinancial break-even = ($425,000 + 769,073)/($36,000 − 22,000)
QFinancial break-even = 85 units
Student name:
1) You purchased 240 shares of stock at a price of $37.92 per share. Over the last year, you
have received total dividend income of $255. What is the dividend yield?
1)
A) 2.8%
B) 16.1%
C) 7.1%
D) 6.7%
E) 1.1%
Question Details
Difficulty : 1 Basic
Topic : Dollar and percentage returns
Learning Objective : 12-01 Calculate the return on an investment.
Section : 12.1 Returns
AACSB : Analytical Thinking
Bloom's : Understand
,2) Six months ago, you purchased 1,800 shares of ABC stock for $38.06 a share. You have
received dividend payments equal to $.60 a share. Today, you sold all of your shares for $40.34 a
share. What is your total dollar return on this investment?
2)
A) $4,104
B) $6,840
C) $1,080
D) $10,368
E) $5,184
Question Details
Difficulty : 1 Basic
Topic : Dollar and percentage returns
Learning Objective : 12-01 Calculate the return on an investment.
Section : 12.1 Returns
AACSB : Analytical Thinking
Bloom's : Understand
3) Last year, you purchased a stock at a price of $82.00 a share. Over the course of the year,
you received $3.30 per share in dividends and inflation averaged 2.7 percent. Today, you sold
your shares for $86.70 a share. What is your approximate real rate of return on this investment?
3)
A) 7.1%
B) 12.5%
C) 8.4%
D) 3.0%
E) 9.8%
,Question Details
Difficulty : 1 Basic
Topic : Nominal and real returns
Learning Objective : 12-01 Calculate the return on an investment.
Section : 12.2 The Historical Record
AACSB : Analytical Thinking
Bloom's : Understand
4) What are the arithmetic and geometric average returns for a stock with annual returns of
14 percent, 9 percent, −2 percent, and 15 percent?
4)
A) 8.78%; 9.00%
B) 9.88%; 9.00%
C) 9.00%; 9.88%
D) 9.00%; 8.78%
E) 9.88%; 8.78%
Question Details
Difficulty : 1 Basic
Topic : Arithmetic and geometric returns
Learning Objective : 12-01 Calculate the return on an investment.
AACSB : Analytical Thinking
Bloom's : Understand
Section : 12.5 More about Average Returns
5) You own a stock that had returns of 12.13 percent, −16.16 percent,21.34 percent, and
19.81 percent over the past four years. What was the arithmetic average return for this stock?
5)
, A) 9.65%
B) 8.12%
C) 10.05%
D) 8.70%
E) 9.28%
Question Details
Difficulty : 1 Basic
Topic : Arithmetic and geometric returns
Learning Objective : 12-01 Calculate the return on an investment.
AACSB : Analytical Thinking
Bloom's : Understand
Section : 12.5 More about Average Returns
6) You own a stock that had returns of 12.18 percent, −16.82 percent,21.78 percent, 25.52
percent, and 9.48 percent over the past five years. What was the arithmetic average return for this
stock?
6)
A) 9.88%
B) 11.30%
C) 10.43%
D) 10.85%
E) 9.32%
Question Details
Difficulty : 1 Basic
Topic : Arithmetic and geometric returns
Learning Objective : 12-01 Calculate the return on an investment.
AACSB : Analytical Thinking
Bloom's : Understand
Section : 12.5 More about Average Returns
