What was the real rate of return over the past year

Assignment Help Financial Management
Reference no: EM131072686

What was the real rate of return over the past year (from one year ago to today) for a stock if the inflation rate over the past year was 2.88 percent, the risk-free return over the past year was 4.54 percent, the stock is currently priced at 58.66 dollars, the stock was priced at 52.24 dollars 1 year ago, and the stock just paid a dividend of 1.92 dollars? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131072686

Questions Cloud

How distance to market is related to land use : Identify the TWO costs that a farmer might consider before deciding what type of agriculture to pursue and explain how distance to market is related to land use.
The fed cuts federal funds rate and discount rate : The Fed cuts the Federal Funds rate and the Discount rate and the Prime goes down to 3.5 percent. Al Truistyk owns an exercise center and needs to upgrade his equipment in order to meet his customers’ needs. The equipment costs $275,000 and the lende..
Describe the impact of the trend on the industry : Assess the marketing philosophy of Commercial Bank of Ethiopia. Which of the philosophies discussed, do you think, is adopted by the bank. Substantiate yourarguments with clear evidences. What should the company do to appeal to the customers?
Case on communication competency : In 2005 when Carolyn Bivens became commissioner of the Ladies Professional Golf Association (LPGA), she was surprised to learn that 70 percent of tournaments were losing money. Many of these events hardly compensated the tour for its support.
What was the real rate of return over the past year : What was the real rate of return over the past year (from one year ago to today) for a stock if the inflation rate over the past year was 2.88 percent, the risk-free return over the past year was 4.54 percent, the stock is currently priced at 58.66 d..
Why is this information newsworthy : Does the article make any recommendations or suggest resources that could benefit the public? If not, what suggestions or recommendations would you suggest?
Find the center of mass of the solid : Find the center of mass of the solid bounded by the graphs of x2 + y2 + z2 = 4 and x2 + y2 = 2y if the density is proportional to the distance from the xy plane
What is the price of the bond today : Over the past year (from 1 year ago to today), the inflation rate was 5.85 percent, the risk-free rate was 7.47 percent, and the real rate of return for a bond was 9.94 percent. The bond was priced at 1,198.72 dollars one year ago, pays annual coupon..
Express the function using only nand gates and invertors : Express the function using only NAND gates and invertors (NOT gates).

Reviews

Write a Review

Financial Management Questions & Answers

  The investment banking syndicates earn on the sale

A company wants to raise 500 million in a new stock issue. Its investment banker indicates the sale of new stock will require 8% underpicking and a 7% spread. How much money will the investment banking syndicate's earn on the sale?

  How much should we offer to percy

In preparation for the meeting you intend to make notes of the points you will raise with the directors. You are aware that the directors are people who have skills in horticulture and retailing, but not in more general business issues, particula..

  Project requires initial investment in net working capital

Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.46 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project requir..

  Shares of preferred stock outstanding at a market price

Peter's Audio Shop has a cost of debt of 7%, a cost of equity of 11%, and a cost of preferred stock of 8%. The firm has 104,000 shares of common stock outstanding at a market price of $20 a share. There are 40,000 shares of preferred stock outstandin..

  Dividends are expected to grow at compound annual rate

An Allied Northern preferred stock pays a $3.84 annual dividend. What is the value of the stock to an investor who requires a 9.5% return? What is the value of the share of stock of HOV Inc., to an investor who requires a 12% rate of return if HOV’s ..

  Municipal bonds of equal risk currently yield

Corporate bonds issued by Johnson Corporation currently yield 10%. Municipal bonds of equal risk currently yield 6.5%. At what tax rate would an investor be indifferent between these two bonds?

  What is the current market value-required rate of return

Apple Sink Inc. (ASI) just paid a dividend of $2.50 per share. Its dividends are expected to grow at 26% a year for the next two years, 24% a year for the years 3 and 4, 16% for year 5, and at a constant rate of 6% per year thereafter. What is the cu..

  Asymmetric information between investors and managers

Consider a firm where the effort undertaken by managers can affect cash flows in the next period. For simplicity, assume managers either exert low effort or high effort. Assume that investors cannot observe effort. Assume that, with low effort, the f..

  What do i plan to do to bring about this change

Values. What values are most central and critical to how you approach work? What values do you want to be known for practicing (not just preaching)?

  Paying annual dividends-dividends are projected to increase

NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.49 a share. The following dividends will be $0.54, $0.69, and $0.99 a share annually for the following three years, respec..

  Question 1the underlier is trading at a spot price of 100

question 1the underlier is trading at a spot price of 100. the ten year riskless interest rate is trading at 10 p.a.

  Considering a project with the data

You are considering a project with the following data: IRR = 8.7 percent; PI = .98; NPV = -$393; Payback period = 2.44 years. Which one of the following statements is correct given this information?

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