Question

Mr.Anil purchased 100 stocks of futura informatics Ltd for Rs.21 on March 15,sold for Rs.35 on March 14 next year ,in the company paid a dividend of Rs 2.50 per share them Anil's holding period return is _


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Answer 1

Answer:

Anil's holding period return exists at 78.6%.

Explanation:

Given,

Income from shares - 250 ($2.5*100$)

The original value of 100 shares - 2100 ($21*100$)

End of period value of 100 shares - 3500 ($35*100$0

Now substitute values in this formula.

To find,

HPR = ((Income + (end of period value - original value)) / original value) *100.

HPR= $250+3500-2100/2100*100$

= $1650/2100*100$

=$0.785*100$

= 78.6%.

Therefore 78.6% is Anil's holding period return.

Answer 2

Anil's holding period return exists at 78.6%.

GIVEN:  100 Stocks of Futura informatics cost is 21 and are sold for 35

TO FIND: Anil's holding period

SOLUTION:

Income from shares - 250  ( 2.5*100)

The original value of 100 shares - 2100 (21*100)

End of period value of 100 shares - 3500 (35*100)

Now substitute values in this formula.

HPR = ((Income + (end of period value - original value)) / original value) *100.

HPR=  250+3500 - 2100/2100*100

= 78.6%.

Therefore 78.6% is Anil's holding period return.