Mr. Castro uses a 20% hatch system of timing when to invest in a stock market. In a given year, the top of a given share was Sh.150 and its bottom was Sh.90. During the year, the company paid an interim DPS of Sh.1.50 and a final DPS of Sh.4.50. Determine the % return on investment.

CPA-Financial-Management-Section-3 Revision kit

Selling price=Sh.150 x (1-0.2) =Sh.120 i.e 20% below the highest price

(Visited 150 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published.