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Francesca Corporation

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I need help to solve some problems from book Corporate Investment Analysis - in FINANCE. Book from: Reilly, F. & brown, K. (2009). Investment Analysis and Portfolio Management (9th ed.). Mason, OH: South-Western/ Cengage Learning. Book used by Strayer University.

I need help to solve those 3 problems: 1, 2, and 3

Please see the attachment.

1). On February 1, you bought 100 shares of stock in the Francesca Corporation for $34 a share and a year later you sold it for $39 a share. During the year, you received a cash dividend of $1.50 a share. Compute your HPR and HPY on this Francesca stock investment.

2). On august 15, you purchased 100 shares of stock in the Cara Cotton Company at $65 a share and a year later you sold it for $61 a share. During the year, you received dividends of $3 a share. Compute your HPR and HPY on your investment in Cara Cotton.

3). You are considering acquiring shares of common stock in the Madison Beer Corporation. Your rate of return expectations are as follows:

MADISON BEER CORP.
Possible Rate of Return Probability
- 0.10 0.30
0.00 0.10
0.10 0.30
0.25 0.30

Compute the expected return [ E (Ri) ] on your investment in Madison Beer.

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1). On February 1, you bought 100 shares of stock in the Francesca Corporation for $34 a share and a year later you sold it for $39 a share. During the year, you received a cash dividend of $1.50 a share. Compute your HPR and HPY on this Francesca stock investment.

HPR = Ending Value of Investment/Beginning Value of Investment
HPR = (100 shares x $39) + (100 ...

Solution Summary

This solution is comprised of a detailed explanation to compute your HPR and HPY on this Francesca stock investment.

$2.19
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Problems
8. On February 1, you bought 100 shares of stock in the Francesca Corporation for $34 a share and a year later you sold it for $39 a share. During the year, you received a cash dividend of $1.50 a share. Compute your HPR and HPY on this Francseca stock investment.

9.At the beginning of last year, you invested $4,000 in 80 shares of the Chang Corporation. During the year, Chang paid dividends of $5 per share. At the end of the year, you sold the 80 shares for $59 a share. Compute your total HPY on these shares and indicate how much was due to the price change and how much was due to the dividend income.

10. The rates of return computed in Problems 1, 2, and 3 are nominal rates of return. Assuming that the rate of inflation during the year was 4 percent, compute the real rates of return on these investments. Compute the real rates of return if the rate of inflation was 8 percent

11. You are considering acquiring shares of common stock in the Madison Beer Corporation. Your rate of return expectations are as follows:
MADISON BEER CORP
POSSIBLE RATE OF RETURN PROBABILITY
-.10 .30
.00 .10
.10 .30
.25 .30

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