Total return on an investment to be a negative rate

Assignment Help Financial Management
Reference no: EM13928043

Which one of the following could cause the total return on an investment to be a negative rate?

Constant annual dividend amount Stock price that declines over the investment period Stock price that remains constant over the investment period Stock price that increases over the investment period Increase in the annual dividend amount

Reference no: EM13928043

Questions Cloud

Compound return earned per year over a multiyear period : Which one of the following is defined as the average compound return earned per year over a multiyear period? Normal distribution of returns Variance of returns Geometric average returns Arithmetic average return Standard deviation of returns
What is this excess return called : Investors require a 4 percent return on risk-free investments. On a particular risky investment, investors require an excess return of 7 percent in addition to the risk-free rate of 4 percent. What is this excess return called? Required return Inflat..
Machine has been fully depreciated and has no salvage value : Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $27,000 to $56,000 per year. The old machine has been fully depreciated and has no salvag..
If the financial markets are semi strong form efficient : If the financial markets are semi strong form efficient, then: every security offers the same rate of return. Only individuals with private information have a marketplace advantage. no one individual has an advantage in the marketplace. Only the most..
Total return on an investment to be a negative rate : Which one of the following could cause the total return on an investment to be a negative rate? Constant annual dividend amount Stock price that declines over the investment period Stock price that remains constant over the investment period Stock pr..
What is the standard deviation of the stocks returns : A stock produced returns of 16 percent, 9 percent, and 21 percent over three of the past four years, respectively. The arithmetic average for the past four years is 10 percent. What is the standard deviation of the stock's returns for the four-year p..
What is the standard deviation of these returns : Over the past six years, a stock had annual returns of 14 percent, -3 percent, 8 percent, 21 percent, -16 percent, and 4 percent, respectively. What is the standard deviation of these returns? 15.08 percent 11.27 percent 14.40 percent 13.59 percent 1..
What is the geometric average return : A stock has produced returns of 16.6 percent, 3.4 percent, 11.7 percent, and -9.2 percent over the past four years, respectively. What is the geometric average return? 5.47 percent 5.16 percent 6.61 percent 6.23 percent 10.12 percent
Interested in building a movie recommendation system : Suppose an online media streaming company is interested in build- ing a movie recommendation system. The website maintains data on the movies in their database (genre, length, cast, director, budget, etc.) and additionally collects data from their su..

Reviews

Write a Review

Financial Management Questions & Answers

  Purchases you will need to make to start your business

You have always wanted to own a restaurant and have now decided to go into business, purchase a building and open an Italian Bistro. The items listed below provide information regarding the purchases you will need to make to start your business. 1. t..

  What rate would you actually being paying here

You are looking at a one-year loan of $13,000. The interest rate is quoted as 9 percent plus three points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. Wha..

  Assuming that the executive leadership includes several

assuming that the executive leadership includes several former accountants how would the organizational goals influence

  No constant growth valuation

Harrison Clothiers' stock currently sells for $31 a share. It just paid a dividend of $1.5 a share (that is, D0 = 1.5). The dividend is expected to grow at a constant rate of 4% a year. Hart Enterprises recently paid a dividend, D0, of $2.75. It expe..

  After the stock divided-firms shares should trade at share

Tanghshan Mining has 100,000 shares outstanding and just declared a 3 for 2 stock split. Before the announcement, the firm's shares were trading at $50.00 per share. After the stock divided, the firm's shares should trade at ________ per share.

  Loan amortization-how big will the annual payments

(loan amortization) On December 31 Beth bought a yacht for $50,000. She paid $14,000 down and agreed to pay the balance in 13 equal annual installments that include both the principal and 15 percent interest on the declining balance. How big will the..

  Semi-annual compounding-what is yield to call for bonds

Atlantis Fisheries issues zero coupon bonds on the market at a price of $421 per bond. These are callable in 7 years at a call price of $640. Using semi-annual compounding, what is the yield to call for these bonds? (Do not round intermediate calcula..

  Management are trying to decide on financing structure

Fox Ten Limited (FTL) is a new company and management are trying to decide on a financing structure. They need to raise funds of $15 million and are deciding between the following options: The first option is to use 90% equity and 10% debt. It will i..

  What is the compound future value

Amy Parker a 22 year old Naval Architect is quick to admit that she does not plan to keep close tabs on her 401k. Amys contribution plus that of her employer, amounts to $2200 per year starting at the age of 23. Amy expects this amount will increase ..

  Considering an investment in new operating equipment

Gramling Inc. is considering an investment in new operating equipment with a 15-year life. The new equipment will cost $300,000 and a one-time cost of $15,000 will be incurred to remove the old equipment and install the new equipment. Should Gramling..

  Consider four different stocks

Consider four different stocks, all of which have a required return of 20 percent and a most recent dividend of $4.40 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, ..

  Government securities and corporate bonds

Compare and contrast the differences between US Government securities and corporate bonds.

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