Calculate the cumulative abnormal return

Assignment Help Financial Management

Reference no: EM131620852

On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO had been resolved. Under the terms of the deal, the CEO would step down from his position immediately. In exchange, he was given a generous severance package. Given the information below, calculate the cumulative abnormal return (CAR) around this announcement. Assume the company has an expected return equal to the market return. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.) Date Market Return (%) Company Return (%) Nov 7 1.0 0.6 Nov 8 0.8 0.6 Nov 9 −0.7 −0.1 Nov 10 −0.6 −0.3 Nov 11 1.8 1.0 Nov 14 −0.6 2.3 Nov 15 0.1 0.1 Nov 16 0.9 1.2 Nov 17 0.7 0.8 Nov 18 −0.7 0.0 Nov 21 0.8 0.2

Reference no: EM131620852

Questions Cloud

Changes in market price of outstanding bonds : There is an inverse relationship between interest rate changes and changes in the market price of outstanding bonds.

What is current yield of the bond today : One year ago, the price of the bond was $1,068. What is the current yield of the bond today?

Bearish concerning the market : A group of investors was polled each week for the last five weeks about whether they were bullish or bearish concerning the market

Futures contract and option contract : Identify and describe the fundamental distinctions between a futures contract and an option contract,

Calculate the cumulative abnormal return : calculate the cumulative abnormal return (CAR) around this announcement.

Requires initial fixed asset investment : Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $834000.

Advantage of the modified internal rate of return : Which of the following is an advantage of the modified internal rate of return (MIRR) over the traditional internal rate of return?

What is responsibility of finance in innovation process : What is the responsibility of finance in the innovation process? What are some common financial tools that finance uses in the innovation process?

The treasurer of company is responsible for : The treasurer of a company is responsible for

User Account

All Pages