Ans 7-3) 37.85%
Po = | Purchase Price |
P1 = | Sale Price |
Total Return on Shares = | Dividend Income + (P1 - P0) |
1.27 + (11.44 - 9.22) | |
3.49 | |
Return on Shares in % = | Return on Share / P0 * 100 |
3.49 / 9.22 * 100 | |
37.85% | |
As per HomeworkLib policy one question can be solved at once.
P7-3 (similar to) Question Help (Calculating rates of return) The common stock of Placo Enterprises had...
(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle Company had the following end-of-year stock prices over the last five years and paid no cash dividends: Time Brangus cattle Comapny $15 11 24 28 a. Calculate the annual rate of return for each year from the above information b. What is the arithmetic average rate of return earned by investing in Brangus Cattle Company's stock over this period? c. What is the geometric...
Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no dividends. Time Caswell 1 $12 2 9 3 7 4 6 5 12 Calculate the annual rate of return for each year from the above information. What is the arithmetic average rate of return earned by investing in Caswell's stock over this period? What is the geometric average rate of return earned by investing in Caswell's stock over this period? Considering the beginning and...
Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no dividends. Time Caswell 1 $12 2 9 3 7 4 6 5 12 Calculate the annual rate of return for each year from the above information. What is the arithmetic average rate of return earned by investing in Caswell's stock over this period? What is the geometric average rate of return earned by investing in Caswell's stock over this period? Considering the beginning and...
(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.25 13% 0.10 negative 7% 0.50 17% 0.40 8% 0.25 20% 0.40 13% 0.10 20%
P7-23 (similar to) Question Help Integrative-Risk and valuation Giant Enterprises' stock has a required return of 14.4%. The company, which plans to pay a dividend of $2.57 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over 2013-2019 period, when the following dividends were paid: B a. If the risk-free rate is 4%, what is the risk premium on Giant's stock? b. Using the constant-growth model, estimate the...
The following are annual rates of return for U.S. government T-bills and U.K. common stocks. Year U.S Government T-Bills U.K Government Common Stock Year US Govt T-bills UK Common Stock 2012 0.063 0.150 2013 0.081 0.043 2014 0.076 0.374 2015 0.090 0.192 2016 0.085 0.106 a. Compute the arithmetic mean rate of return and standard deviation of rates of return for the two series. b. Discuss these two alternative investments in terms of their arithmetic average rates of return and...
?The common stock of Placo Enterprises had a market price of ?$9.06 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of ?$1.01 and closed at a price of ?$10.40. What rate of return did you earn on your investment in? Placo's stock?
- Question 3 1 point Number Help A stock had returns of 14.94 percent (1 year ago), -25.67 percent (2 years ago), X (3 years ago), and 26.71 percent (4 years ago) in each of the past 4 years. Over the past 4 years, the geometric average annual return for the stock was 6.68 percent. What was the arithmetic average annual return for the stock over the past 4 years? Answer as a rate in decimal format so that 12.34%...
P7-10 (similar to) Question Help Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a high yield dividend payer From 2015 through 2019, Seagate paid the following per-share dividends Dividend per share $2.52 2.23 Year 2019 2018 2017 1.87 2016 1.22 1.53 2015 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate Use a 19% required rate of return to...
solve question 5&6 5. Calculating Average Returns The rate of return on Cherry Jalopies, Inc., stock over the last five years was 7 percent, 21 percent, - 8 percent, - 5 percent, and 31 percent. Over the same period, the return on Straw Construction Company's stock was 12 percent, 34 percent, - 11 percent, -7 percent, and 41 percent. What was the arithmetic average return on each stock over this period? 6. Calculating Returns and Variability Using the following returns,...