What rate of return did you earn on your investment

Assignment Help Financial Management
Reference no: EM131893824

QUESTION 1

Caswell Enterprises had the following end-of-year stock prices over the last five years and paid no dividends.

TimeCaswell1$1229374658

Calculate the average 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 ending stock prices for the five-year period are the same, which type of average rate of return best describes the annual rate of return earned over the period (arithmetic or geometric)?

The annual rate of return at the end of year 3 is what percent?

QUESTION 2

The common stock of Plaxo Enterprises had a market price of $9.45 on the day you purchased it just 1 year ago. During the past year, the stock paid a dividend of $1.43 and closed at a price of $11.66. What rate of return did you earn on your investment in Plaxo's stock? The rate of return you earned on Plaxo's stock is what percent?

QUESTION 3

On December 5, 2007, the common stock of Google, Inc. (GOOG) was trading at $698.51. One year later, the shares sold for $301.99. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 5, 2007? The rate of return you would have earned is what percent?

QUESTION 4

Syntex is considering an investment in one of two stocks. Given the information that follows, which investment is better based on the risk (the standard deviation) and return? Given the information in the table, what percent is the rate of return for Stock B?

Commont Stock A B Table

TimeCaswell1$1229374658

Calculate the average 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 ending stock prices for the five-year period are the same, which type of average rate of return best describes the annual rate of return earned over the period (arithmetic or geometric)?

The annual rate of return at the end of year 3 is what percent?

Reference no: EM131893824

Questions Cloud

Dollar return and percent return last year : Conglomco stock ended last year at $77.24. If you owned 200 shares of Conglomco stock, what were your dollar return and percent return last year?
Compute the weighted average cost of capital of firm : If the marginal tax rate of the firm is 30%, compute the weighted average cost of capital of the firm.
How does societal culture influence your motivation at work : How do you feel your values and the values of the organization match? Explain if you feel you and the organization you work for are a "good fit."
What is ace present value of the cost of owning : a). What is Ace's present value of the cost of owning? b.) What is Ace's present value of the cost of leasing?
What rate of return did you earn on your investment : What rate of return did you earn on your investment in Plaxo's stock? The rate of return you earned on Plaxo's stock is what percent?
Account at the end of that time period : The first deposit is made today. How much money will be in the account at the end of that time period?
Evaluating the effects of risk : Risk lies at all levels of business activity. There are many different types of risks within an organization as well as ways to manage those risks.
Discuss seven areas addressed in the program competencies : You will write a 700-1000 word narrative to serve as a preface to the Professional Work Samples section. This narrative should consist of a clear.
Determine the level of market risk : Explain how differences in allocations between the risk-free security and the market portfolio can determine the level of market risk.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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