Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Question
a b and c please thank you
Transcribed Image Text:Over the last nine years, you have earned the following returns on the
NZX
Year Return
(ending in March)
2013-2014
17.45%
2014-2015 15.17%
2015-2016 17.26%
2016-2017 7.94%
2017-2018 16.92%
2018-2019 19.54%
2019-2020 0.36%
2020-2021 28.93%
2021-2022 -5.17%
You have also collected the level of the CPI over the same period:
Date Level
March 2013
March 2014
March 2015
March 2016
March 2017
March 2018
1011
March 2019
1026
March 2020
1052
March 2021
1068
March 2022 1142
958
972
975
979
1000
(a) For each tax year, calculate the inflation rate.
(b) Now calculate a real rate of return for the NZX50 (use the full for-
mula, not the approximation) for each year.
(c) What is the mean nominal return for the NZX50? What is the mean
real return?
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