1-Joel purchased 100 shares of stock for $20 per share. During the year, he received dividend checks amounting to $150. Joel recently sold the stock for $32 per share. What was Joel’s return on the stock?
5-Emma bought a stock a year ago for $53 per share. She received no dividends on the stock and sold the stock today for $44 per share. What is Emma’s return on the stock?
3-Joel (from problem 1) is in the 22% tax bracket. What amount of taxes will he pay on his capital gain if he held the stock for less than a year?
7-Dawn decides to invest $2,000 each year in stock at the end of each of the next five years. She believes she can earn a 6% return over that time period. How much will Dawn’s investment be worth at the end of five years?
9-Floyd wants to invest the $15,000 he received from his grandfather’s estate. He wants to use the money to finance his education when he pursues his doctorate in five years. What amount will he have in five years if he earns a 6% return? If he receives an 8% return? A 10% return?
10-Morris will start investing $1,500 a year in stocks. He feels he can average a 10% return. If he follows this plan, how much will he accumulate in ten years? In twenty years? In thirty years?