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    Holding period return

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    The following stocks are listed on the Exchange. Based on last years prices, and the dividend paid, what are the rates of return. Calculate the one-year holding period return on each, and identify those that meet your 10.25% rate of return requirement?

    Company Current Price Price One Year Ago Current Dividend
    Charlie, Co. $ 4.00 $4.50 $1.10
    Delta, Inc. $ 2.75 $2 $ 0
    Foxtrot, Ltd. $15.00 $14.45 $ .75
    Romeo Bros. $24.00 $25 $3.65
    Sierra, LLC $37.75 $36 $1.60
    Tango Ind. $65.00 $62.50 $3.50

    (in document for better formatting)

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    Solution Preview

    Holding Period return = (Price now - Price one year ago + Dividend)/Price one year ago
    Charlie, Co. = ...

    Solution Summary

    The solution explains the calculation of holding period returns.