Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Forecasting Average Returns
Over the 81-year period 1926-2006, the geometric average return for the large company stocks was 10.4 percent and the arithmetic average return was 12.3 percent.
Calculate average return forecasts for 1, 5, 10, and 25 years into the future.
In this case, we would use Blume's formula with values of T = 1, 5, 10, and 25 and N = 81:R(T)=T-1/80 X10.4% +81-T/80 X12.3%
T
R(T )
1
12.30%
5
12.2
10
12.1
25
11.7
81
10.4
Notice that short-term forecasts are closer to the arithmetic average return and long term forecasts are closer to the geometric average return.
Create a fixed budget income statement for the planned level of sales and production and create a fixed budget income statement for actual level of sales and production.
When the fair value of the assets acquired in a business purchase exceed the purchase price, a bargain purchase arises. When this happens, GAAP requires that the difference be allocated:
Straight-line amortization of a premium related to a bond issuance would result in which of the following?
Prepare a schedule of cost of goods manufactured for the year ended December 31. Prepare an income statement by function for the year ended December 31.
Equipment acquired on January 4, 2011, at a cost of $298,100, has an estimated useful life of nine years and an estimated residual value of $38,900. What was the annual amount of depreciation for the years 2011, 2012, and 2013, using the straight-lin..
Financial analysis, key concept A perplexing issue, particularly for many human resource management and marketing professionals, is the absence of a valuation in the traditional financial statements relating to human capital and other internally gene..
Man of War Company adopted a stock-option plan on April 30, 2013, that provided that 500,000 shares of $10 par value stock be designated as available for the granting of options to officers of the corporation at a price of $26 a share. The market pri..
question on 1st july 2013 the foster company sold inventory to the slate corporation for 300000. terms of the sale
The following accounts were taken from ABC Company’s unadjusted trial balance at December 31, 2014: ABC Company has not yet recorded adjusting entries related to the following four items: The prepaid insurance in the unadjusted trial balance relates ..
during 2012 the following events took place for a small distribution company. you are required to prepare the
Explain if there is a market for treasury stock? Who would buy treasury stock? What is the return of an investment in treasury stock compare to common and preferred stock?
Payback, NPV, and IRR Rieger International is attempting to evaluate the feasibility of investing $95,000 in a piece of equipment that has a 5-year life. Calculate the payback period for the proposed investment. Calculate the net present value (NPV) ..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd