SA HW5E
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Feb 20, 2024
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HW5E (HPR, APR, EAR, Arithmetic mean and geometric mean of returns)
Question 1
The prices for the White Swan Corporation for the first quarter of the last year are given below. Find the holding period return (percentage return) for February.
End of the
month
Stock
price
January
94.02
February
90.35
March
108.22
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)
Your Answer: -3.90%
Solution: Question 2
You purchased 100 shares of General Motors stock at a price of $98.99 one year ago. You sold all stocks today for $102.76. During the year, the stock paid dividends of $5.79 per share. What is your holding period return?
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)
.
Your Answer: 9.66%
Solution:
HW5E (HPR, APR, EAR, Arithmetic mean and geometric mean of returns)
Question 3
You purchased 300 shares of General Electric stock at a price of $61.56 four years ago. You sold all stocks today for $69.92. During that period the stock paid dividends of $3.91 per share. What is your annualized holding period return (annual percentage rate)?
Round the answers to two decimal places in percentage form.
(Write the percentage sign in the "units" box)
Your Answer: 4.98%
Solution: Question 4
John purchased 100 shares of Black Forest Inc. stock at a price of
$155.95 three months ago. He sold all stocks today for
$160.90. During this period the stock paid dividends of
$6.19 per share. What is John’s annualized holding period return (annual percentage rate)?
Round the answers to two decimal places in percentage form.
(Write the percentage sign in the "units" box)
Your Answer: 28.57%
Solution:
HW5E (HPR, APR, EAR, Arithmetic mean and geometric mean of returns)
Question 5
Mary purchased 100 shares of Sweet Pea Co. stock at a price of $49.42 six months ago. She sold all stocks today for $47.55. During that period the stock paid dividends of $1.40 per share. What is Mary's effective annual rate?
Round the answers to two decimal places in percentage form.
(
Write the percentage sign in the "units" box)
Your Answer: -1.89%
Solution:
Question 6
Calculate the arithmetic average return, given annual returns of:
Year 1 9.60%
Year 2
7.40%
Year 3
-14.55%
Year 4
11.52%
Year 5 9.87%
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HW5E (HPR, APR, EAR, Arithmetic mean and geometric mean of returns)
Round the answer to two decimals places in percentage form. Please write % sign in the "units" box.
Your Answer: 4.77% Solution: Question 7
Calculate the Geometric average return, given annual returns of:
Year 1 8.48%
Year 2
7.69%
Year 3
-12.73%
Year 4
8.49%
Year 5 5.98%
Round the answer to two decimals places in percentage form. Please write % sign in the "units" box.
Your Answer: 3.23%
Solution:
Related Questions
You have found the following historical information for the Daniela Company:
Stock
price
EPS
Year 1
Year 2
Year 3
Year 4
$49.24
2.59
$67.43
$61.19
$67.07
2.65
2.82
2.81
Earnings are expected to grow at 8 percent for the next year.
What is the PE ratio for each year? (Do not round intermediate calculations and round
your answers to 2 decimal places, e.g., 32.16.)
Year 1
Year 2
Year 3
Year 4
What is the average PE ratio over this period? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
Average PE
Using the company's historical average PE as a benchmark, what is the target stock
price in one year? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
Target price
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You have found the following historical information for DEF Company:
Year 2
Year 3
Year 4
Year1
$47.59
$58.69
Stock Price
$52.42
$56.88
$2.45
$2.68
EPS
$2.97
$3.78
Earnings are expected to grow at 7 percent for the next year. Using the company's historical average
PE as a benchmark, what is the target stock price in one year? Answer to two decimals.
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Return for the entire period is
(Round to two decimal places.)
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How can I calculate geometric average in Excel?
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You have found the following historical information for DEF
Company:
Year1 Year 2 Year 3
$46.88
$49
$53.14
$2.33
$2.74
$2.96
$3.9
Earnings are expected to grow at 9 percent for the next
year. Using the company's historical average PE as a
benchmark, what is the target stock price in one year?
Answer to two decimals.
Stock Price
EPS
Year 4
$57.87
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Consider the following annual returns of Molson Coors and International Paper: Molson Coors International Paper Year 1 23.8 % 6.0 % Year 2 − 9.9 −19.0 Year 3 44.0 −0.8 Year 4 − 9.9 28.1 Year 5 17.7 −12.6 Compute each stock’s average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.)
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Consider the following annual returns of Molson Coors and International Paper:
Molson Coors
International Paper
Year 1
19.3
%
5.1
%
Year 2
−
9.0
−18.1
Year 3
39.5
−0.8
Year 4
−
8.1
27.2
Year 5
16.8
−11.7
Compute each stock’s average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.)
Molson Coors
International Paper
Average return
%
%
Standard deviation
%
%
Coefficient of variation
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Consider the following annual returns of Molson Coors and International Paper:
MolsonCoors
International Paper
Year 1
20.3%
5.3%
Year 2
-9.2
−18.3
Year 3
40.5
−0.1
Year 4
-8.5
27.4
Year 5
17.0
−11.9
Compute each stock’s average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.)
Molson Coors
International Paper
Average return
_________.__%
_______.__%
Standard deviation
__________.__%
_______.__%
Coefficient of variation
__________.__
__________.__
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Please provide answer the following requirements on these financial accounting question
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Consider the following annual returns of Estee Lauder and Lowe’s Companies:
EsteeLauder
Lowe’s Companies
Year 1
23.4
%
−6.0
%
Year 2
−26.0
16.1
Year 3
17.6
4.2
Year 4
49.9
48.0
Year 5
−16.8
−19.0
Compute each stock’s average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.)
ESTEE LAUDER. LOWES COMPANY
Average return. %. %
Standard deviation % %
Coefficient of variation
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Use the following information to answer questions 4 - 9.
ABC stock price and dividend history are as follows. Fill in the returns (to 4 decimal places).
Price At Dividend
Paid at
Month End
Month Month
End
Dec $54.00
Jan $53.30 none
Feb $55.66 none
The averages Arith=_ #8
Discrete
Return
#4
%
#6 %
Continuous
Return
#5
#7
%
%
% Geom= 1.5254%
Cont=
#9
%
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Use the information in the following stock quote to answer the question:
As of February 1, 2XX1
Name
Symbol
Open
High
Low
Close
Net Chg
Div
Yield
PE
Target
TGT
87.01
87.32
86.75
87.05
-0.32
2.56
2.93
16.76
What was Target’s earnings per share over the last year? (Round your answer to 2 decimal places. (e.g., 32.16))
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please use formula not excel sheet thank you
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Provide correct answer general Accounting question
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Please refer to the screenshot.
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Your stock's returns for the past four years are as follows.
t Return
t1 19.79%
t2 -0.58%
t3 8.55%
t4 4.68%
Compute the geometric average return for this stock. Please enter your answer as a PERCENT rounded to 2 decimal places.
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General accounting
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1. A stock has had the following year-end prices and dividends:
Year
Price ($)
Dividend ($)
94.17
92.21
1.05
96.1
1.2
96.3
1.57
94.16
1.66
96.46
1.69
What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get
-0.0435, you should answer -4.35).
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Consider the following information on large-company stocks for a period of years.
Large-company stocks
Inflation
Arithmetic
Mean
15.3%
3.5
a. What was the arithmetic average annual return on large-company stocks in nominal
terms? (Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
b. What was the arithmetic average annual return on large-company stocks in real
terms? (Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Answer is complete but not entirely correct.
a.
Nominal return
15.30
%
b.
Real return
11.80
%
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Subject:-- general accounting
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A company expects EPS to be $2.52 next year. The industry average P/E ratio is 23.99 and Enterprise multiple is 7.57. The EBITDA for the company is $22.97 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.
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Question 7
Below is annual tock return data on ABC Corp and XYZ, Inc.
Year ABC XYZ
2010
8% -3%
2011 20%
0%
2012 -8% 20%
2013
4%
8%
v (a)
What is the average return and standard deviation for each stock? (Round answers to 2 decimal places, e.g. 52.75.)
ABC
XYZ
Average return
Standard deviation
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Please provide this question solution accounting
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1. A stock has had the following year-end prices and dividends:
Dividend ($)
Year
1
2
3
4
5
6
Price ($)
93.75
94.42
95.5
93.24
94.65
97.9
1.38
1.36
1.72
1.76
1.95
What is the geometric average return for the stock? Answer as a percentage to two decimals (if
you get -0.0435, you should answer -4.35).
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Consider the following annual returns of Estee Lauder and Lowe's Companies:
Lowe's
Companies
-8.0%
16.3
4.4
41.0
-11.0
Year 1
Year 2
Year 3
Year 4
Year 5
Estee Lauder
23.6%
-21.0
17.8
50.1
-17.0
Compute each stock's average return, standard deviation, and coefficient of variation.
Note: Round your answers to 2 decimal places.
Average return
Standard deviation
Coefficient of variation
Which stock appears better?
Estee Lauder
10.70 %
%
Lowe's
Companies
8.54 %
21.13 %
2.47
Lowe's Companies
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