What is your approximate annual real rate of return

Assignment Help Finance Basics
Reference no: EM131126451

Last year, you purchased a stock at a price of $51.50 a share. Over the course of the year, you received $1.80 per share in dividends and the annual inflation rate averaged 2.6 percent. Today, you sold your shares for $53.60 a share.

What is your approximate annual real rate of return on this investment?

Reference no: EM131126451

Questions Cloud

How long will it take you to save an adequate amount : How long will it take you to save an adequate amount for retirement if you deposit $2,500 per quarter year into an account beginning today that’s pays an effective annual rate (EAR) of 4 percent if you wish to have a total of $1,000,000 at retirement..
What is the expected return and beta of your portfolio : What is the expected return and beta of your portfolio using the following data: Market risk premium = 8 percent Risk-free rate = 4 percent Beta of XYZ = 1.5; Beta of PDQ = 2.0 Investment in XYZ stock = $50,000 Investment in PDQ stock = $100,000 You ..
How much should you be willing to pay for this investment : You are considering the purchase of an investment that would pay you $5,000 per year for Years 1-5, $3,000 per year for Years 6-8, and $2,000 per years for Years 9-10. If you require a 10 percent rate of return and the cash flows occur at the end of ..
What is the market price of this stock if the required rate : The company is planning on paying $1.50, $1.75, and $1.80 a share over the next 3 years, respectively. After that, the dividend will be constant at $1.50 per share per year. What is the market price of this stock if the required rate of return is 10...
What is your approximate annual real rate of return : Last year, you purchased a stock at a price of $51.50 a share. Over the course of the year, you received $1.80 per share in dividends and the annual inflation rate averaged 2.6 percent. Today, you sold your shares for $53.60 a share. What is your app..
Compute the present value of interest tax shields generated : Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal tax rate is T = 0.35. a. A $1000, one-year loan at 8%. b. A five-year loan of $1000 at 8%. Assume no principal is repa..
Discuss different costs of internal and external financing : Discuss different costs of internal and external financing?
Analyze the difference between a firm financial : Analyze the difference between a firm's financial vs. operating leverage. Could you define them and state their differences?
What was senbet operating cash flow : Senbet also had notes payable of $900,000. These notes carried an interest rate of 9%. Depreciation was $110,000. Senbet's tax rate was 35%. a. What was Senbet's net income? b. What was Senbet's operating cash flow?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Control over retirement savings

How much control do you think you have over your own retirement savings? In other words, after all said and done in above, do you really think you can reasonably count on your retirement savings at the time of your retirement?

  What the firm''s cost of common stock using dcf approach

Ross's common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10% per year. What's the firm's cost of c..

  What is the project’s expected npv

Shao Industries is considering a proposed project for its capital budget. The company estimates that the project's NPV is $12 million. This estimate assumes that the economy and market conditions will be average over the next few years. What is the p..

  What is the company net working capital

The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,121,599, accounts receivables of $3,488,121, short term notes payable worth $1,151,663 and other current assets of $121,455. What ..

  What would value of endless stream of cash flow be worth

What would the value of this endless stream of cash flow be worth, at a discount rate of 10%? Insert it in the cell above the arrow.

  What is the new divisor for the price-weighted index

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $94, $312, and $90, respectively. If Baker undergoes a 2-for-1 stock split, what is the new divisor for the price-weighted index?

  Financial analysis in a report

Choose a public company, and present findings from your financial analysis in a report. Your report must include the following:

  Question based on optimal portfolio

Assume that a risk averse individual has $1, and there are 3-assets; 1st safe, and 2nd risky. The safe one yields a sure rate of return of 1.

  If the dollar increases in value relative to foreign

a suppose that government spending is raised at the same time the money supply is lowered. what will happen to the

  Dean rate of return on investment

Dean invested $1100 into a bond. When the bond's maturity date was reached five years latter, Dean had a total of $1500. What is Dean's rate of return on investment.

  The consolidated ?nancial statements present fairly

In our opinion, the consolidated ?nancial statements present fairly, in all material respects, the ?nancial position of R&R and its subsidiaries as of December 31, 2009, and the results of their operations and their cash ?ows for the ?scal year ended..

  What is coefficient of correlation between square footage

What is the Coefficient of Correlation between square footage and listing price? Does your Coefficient of Correlation seem consistent with your answer to #2 above? Why or why not?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd