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anonymous

  • one year ago

Need help urgently; it's financial math! Will fan and medal anyone who can help!

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  1. anonymous
    • one year ago
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    When she turned 18, Kayla purchased 110 shares of Stock A for $38 per share; 88 shares of Stock B for $109 per share; 78 shares of Stock C for $57 per share; and 18 shares of Stock D for $98 per share. At age 36, Kayla sold Stock A for $5,019, Stock B for $11,490, Stock C for $6,131, and Stock D for $1,219 with annual dividends of $45 per year. Which stock provided Kayla with the greatest return on her investment? Stock A Stock B Stock C Stock D

  2. whpalmer4
    • one year ago
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    Let's look at them one by one. Stock A was bought for $38/share (110 shares) and sold for $5019. How much did stock A cost to purchase?

  3. anonymous
    • one year ago
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    38 * 110 - 4,180. So $4,180 to purchase Stock A?

  4. whpalmer4
    • one year ago
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    Yes, that's correct. If it cost $4,180 to purchase, and Kayla received $5,019 when selling, how much was the return on the investment in stock A?

  5. anonymous
    • one year ago
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    $839

  6. whpalmer4
    • one year ago
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    I believe you are correct :-) How about stock B? 88 shares @ $109, sold for $11,490

  7. anonymous
    • one year ago
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    Stock B: 88 * 109 = $592 Stock C: 78 * 57 = 4,446 Stock D: 18 * 98 = 1,764

  8. anonymous
    • one year ago
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    For the costs

  9. anonymous
    • one year ago
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    So if she sold Stock B for $11,490 - $9,592 = $ 1,898

  10. anonymous
    • one year ago
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    Stock C: $6,131 - 4,446 = $1,685

  11. anonymous
    • one year ago
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    @whpalmer4 I'm not sure how to calculate Stock D because it has annual dividends of $45 per year

  12. anonymous
    • one year ago
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    $1,219 - 1,764 = -545 which makes her in the negatives so she sold it for less than she invested but she also get the $45 annual dividends per year

  13. whpalmer4
    • one year ago
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    okay, so, she got $45 annually in dividends. How many years?

  14. anonymous
    • one year ago
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    It doesn't say but it did mention earlier that she is 36 when she sells but she had bought at age 18. So should I use that?

  15. anonymous
    • one year ago
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    I don't think it would justify the cost though because 18*45 would only make her $810

  16. anonymous
    • one year ago
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    I think she makes the most off of Stock B

  17. whpalmer4
    • one year ago
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    Sorry, wrote numbers down in wrong order! basis on stock D was 18*98 = 1764 pocketed 810 in dividends sold for 1219 net: 1219+810-1764 = 265 Yes, B looks like the best investment. Easy to pick the good investments afterwards, it's before that is tricky :-)

  18. anonymous
    • one year ago
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    @whpalmer4 thank you so much for all of your help and for helping me to understand it! Thank you! Fanned and medal!

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