You have received your investment portfolio year-end statement from your broker, Rich Waldman. All investments were purchased at the January prices and held the entire year. Portfolio Year-End Statement Investment Number Dividend Price—Jan. 1 Price—Dec. 31 FernRod Corp. 400 shares $.30 $38.38 $45.75 Crown Realty, Inc. 500 shares 0 $74.50 $70.13 Sterling Mines 200 shares $.24 $27.88 $29.25 SJB Enterprises 300 shares $3.00 $68.75 $64.63 GTech 7.125% 16 20 bonds $98.50 $101.38 Comet 9.875% 17 10 bonds $103.88 $100.75 Calculate how much profit or loss you made for the year, including stock dividends and bond interest. What was the total return on investment for your portfolio? Using a broker’s commission of 3% buying and 3% selling on the stocks and $5 buying and $5 selling per bond, how much profit or loss would you make if you liquidated your entire portfolio at the December 31 prices? What would be the return on investment?
You have received your investment portfolio year-end statement from your broker, Rich Waldman. All investments were purchased at the January prices and held the entire year. Portfolio Year-End Statement Investment Number Dividend Price—Jan. 1 Price—Dec. 31 FernRod Corp. 400 shares $.30 $38.38 $45.75 Crown Realty, Inc. 500 shares 0 $74.50 $70.13 Sterling Mines 200 shares $.24 $27.88 $29.25 SJB Enterprises 300 shares $3.00 $68.75 $64.63 GTech 7.125% 16 20 bonds $98.50 $101.38 Comet 9.875% 17 10 bonds $103.88 $100.75 Calculate how much profit or loss you made for the year, including stock dividends and bond interest. What was the total return on investment for your portfolio? Using a broker’s commission of 3% buying and 3% selling on the stocks and $5 buying and $5 selling per bond, how much profit or loss would you make if you liquidated your entire portfolio at the December 31 prices? What would be the return on investment?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14P: Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and...
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Question
You have received your investment portfolio year-end statement from your broker, Rich Waldman. All investments were purchased at the January prices and held the entire year.
| Portfolio Year-End Statement | ||||
| Investment | Number | Dividend | Price—Jan. 1 | Price—Dec. 31 |
| FernRod Corp. | 400 shares | $.30 | $38.38 | $45.75 |
| Crown Realty, Inc. | 500 shares | 0 | $74.50 | $70.13 |
| Sterling Mines | 200 shares | $.24 | $27.88 | $29.25 |
| SJB Enterprises | 300 shares | $3.00 | $68.75 | $64.63 |
| GTech 7.125% 16 | 20 bonds | $98.50 | $101.38 | |
| Comet 9.875% 17 | 10 bonds | $103.88 | $100.75 |
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Calculate how much profit or loss you made for the year, including stock dividends and bond interest.
-
What was the total
return on investment for your portfolio? -
Using a broker’s commission of 3% buying and 3% selling on the stocks and $5 buying and $5 selling per bond, how much profit or loss would you make if you liquidated your entire portfolio at the December 31 prices?
-
What would be the return on investment?
-
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