You inverted $10,000 in a large U.S. stocks at the beginning of 2016 and earned 6% in 2016, 2.0% in 2017, 4.5% in 2018, and 1.6% in 2019. What average return did you earn during the 2016-2019 period?
Q: Calculate the return on equity (after tax) ratio. (Round your answers to the nearest hundredth.)…
A: Return on Equity: It is a measure of the profitability of a company and it is estimated by dividing…
Q: Suppose that the value of an investment in the stock market has increased at an average compound…
A: Calculation of Worth of Investment Today:With the current year being 2016, there are totally 112…
Q: At the beginning of 2016, the stock market value (Dow Jones Industrial Average) was around 17,150;…
A: Investment is the use of money in order to increase its value in the future. An investment is…
Q: Campbell Supper Co. paid a $0.672 dividend per share in 2013, which grew to $0.82 in 2016. This…
A: Dividend per Share in 2013 (pv) = $0.672Dividend per Share in 2016 (fv) = $0.82Time Period (nper) =…
Q: In your position as research assistant to a portfolio manager, you need to analyze the profitability…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Nominal…
A: Excel spread sheet of calculation of standard deviation of the market returns:
Q: Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer.…
A: Above problem can be solved by using Dividend Growth Model. Dividend growth model is a valuation…
Q: Assume that the average annual historical return for shares that comprise the Australian All…
A: Calculation of 95% confidence interval:
Q: f 2015, Toronto Dominion Bank (TD) stock cost $45 per share and was expected to yield 4% per year in…
A: Dividend yield is dividend received on the price of stock and and total dividend received is…
Q: In the year 2016, Al-Jazeerah and Company's shares traded at $ 30 per share; this is a 25% the…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns…
A: Here,
Q: Over the past 4 years, large-company stocks and U.S. Treasury bills have produced the returns stated…
A: real rate of return=1+nominal rate of return1+inflation-1.....(1)
Q: Annual dividends of Generic Electrical grew from $0.79 in 2012 to $1.16 in 2017. What was the…
A: Dividends are the amount paid to the shareholders of the company out of the company's profits. The…
Q: The following year-end price and dividend data was found for ABC Co: Year Closing Price Dividend…
A: Return (%) = (Year end price - previous year price + dividend ) / previous year price
Q: a. RAK Ceramic is currently paying dividend Tk. 3.70 per share, which is expected to grow at a…
A: The question can be solved using constant dividend growth model
Q: During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share and was…
A: Given:Dividend yield for TD = 4%Price of TD = $45Dividend yield for CNA = 2.5%Price of CNA = $40
Q: Investments: Financial Stocks During the first quarter of 2015, Toronto Dominion Bank (TD) stock…
A: Linear programming problem will be formulated in excel to find the minimum total risk.
Q: following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year…
A: Nominal Interest rate = Real Interest rate + Inflation Real Interest rate = Nominal Interest rate -…
Q: During the period from 2011 through 2015 the annual returns on small U.S. stocks were -3.76 percent,…
A: We will use the basic formula assuming the investment of $1000 for the both the question statements:
Q: 1. Following are recent returns on Google and on Coca-Cola. Year Google Coca-Cola 2017 121.67%…
A: For calculating coefficient of variance , we need standard deviation and expected rate of return-…
Q: In 2000 the P/e ratio of the stock market reached about 45. If you assume that these corporations…
A: The cumulative monetary or retail worth of all goods or services completed manufactured over a…
Q: 1. A firm's common stock is currently selling for $50 per share. Its dividend payments and end of…
A: Shares are one of investment option with high return and risk. Share prices fluctuates regularly due…
Q: Assume that the required return for Four Season's stock is 12 percent, and the company has paid the…
A: Dear student, in this question first we have to calculate the growth rate, then we will calculate…
Q: Daniel invested $1,000 in large U.S. stocks at the beginning of 2012. This investment earned 15.30…
A: Return rate in 2012 = 15.30% Return rate in 2013 = 33.20% Return rate in 2014 = 12.25% Return rate…
Q: In mid-2015, Coca-Cola Company (KO) had a share price of $39. Its dividend was $1.00 per year, and…
A: The share price is calculated below:
Q: Over the last 10 years, a firm has had the earnings per share shown in the following table: Year…
A: A. Calculate the annual dividend for 2017 as follows: Annual dividend = Earnings per share *…
Q: The following information relates to the prices and dividends of two stocks listed on the Ghana…
A: Given: To compute: The Beta of both stocks using market returns
Q: Calculate the annual dividend growth rate (include excel formulas) Based on the annual dividend…
A: The formula for calculating the annual dividend growth rate is, wherein D2 - current year dividend;…
Q: If Wiper's stock had a price/earnings ratio of 14 at the end of 2020, what was the market price of…
A: Price-Earnings Ratio: It is the ratio used for valuing a company and shows the relationship between…
Q: In December 31,2017 GE paid an annual dividend of .96. They also announced they will reduce their…
A: Note : As per the guidelines, only first three questions will be answered. The stock price can be…
Q: calculate the price-to-book ratio.
A: Price of the Stock = $30 per share Book Value of Equity = $10 billion No. of Shares = 400 million…
Q: The following information relates to the prices and dividends of two stocks listed on the Ghana…
A:
Q: Giant Enterprises’ stock has a required return of 15%. The company, which plans to pay a dividend of…
A: 1. The calculation of the risk premium is done as: The formulae sheet is annexed:
Q: At the beginning of the slide, you were asked to derive the annualize rate of return for the U.S.…
A: To calculate the annualized rate o return the formula is: Annual Return=Final Value of…
Q: You have collected the following information regarding Impi industrula Corporation's historical…
A: The company’s share is trading at R620 in the market. In order to choose what action must be taken,…
Q: Returns for the Alcoff Company over the last 3 years are shown below. What's the standard deviation…
A: Solution: Year Return 2010 21% 2009 -12.50% 2008 25% Mean X¯= 21%-12.50%+25%/3 = 11.17%…
Q: Annual dividends of Generic Electrical grew from $0.68 in 2012 to $1.05 in 2017. What was the annual…
A: Formula is FV/ PV = (1 + r )^n where FV = Future Value PV = Present Value r = growth rate…
Q: Assume these are the stock market and Treasury bill returns for a 5-year period: Year…
A: Given:
Q: An analyst is reviewing the valuation of ALUW as of the beginning of October 2018 when ALUW is…
A: Information given in question: Current dividend = GHc 1.48 Expected growth rate = 10% Tenure for…
Q: 1. The table below provides show the share price and dividends received: Share price ($) Dividend…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price…
A: Rate of return is the annual income from an investment expressed as a proportion of the original…
Q: Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer.…
A: The formula to compute dividend growth rate as follows: Dividend growth rate=Last year…
Q: What is Company A’s intrinsic value
A: Dividend discount model refers to a stock valuation model which is used by the company for…
You inverted $10,000 in a large U.S. stocks at the beginning of 2016 and earned 6% in 2016, 2.0% in 2017, 4.5% in 2018, and 1.6% in 2019. What average return did you earn during the 2016-2019 period?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
- During the period from 2011 through 2015 the annual returns on small U.S. stocks were -3.76 percent, 18.79 percent, 46.82 percent, 3.39 percent, and -3.40 percent, respectively.What would a $1 investment, made at the beginning of 2011, have been worth at the end of 2015? (Round answer to 3 decimal places, e.g. 52.750.) Value in 2015 $enter a dollar amount of the investment at the end of 2015 rounded to 3 decimal places What average annual return would have been earned on this investment? (Round answer to 2 decimal places, e.g. 52.75.) Average annual return enter the average annual return per year rounded to 2 decimal places percent per year.Suppose a firm has had the following historic sales figures. Year: 2016 2017 2018 2019 2020 Sales $1,530,000 $1,720,000 $1,560,000 $2,100,000 $1,850,000 What would be the forecast for next year’s sales using FORECAST.ETS to estimate a trend? Note: Round your answer to the nearest whole dollar.During the last four years, you owned two stocks that have had the following annual rates of return. Year KEX KW 2014 0.13 -0.08 2015 0.05 0.21 2016 0.07 0.06 2017 0.09 0.15 Compute the arithmetic mean annual return for EACH stock Compute the standard deviation of the annual rate of return for EACH stock Taking the results of (i) and (ii) into consideration, which stock is preferable? Why? Compute the geometric mean annual return for EACH stock
- Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place. 26. The historical stock returns for GAF, Inc. are listed below: Year -Annual Stock Return2013 -12%2014 14%2015 35%2016 2%2017 -16%2018 8%2019 0%2020 34%2021 12%2022 6% What is the standard deviation of returns for GAF, Inc. stock over the 10-year time period? (Compute the standard deviation assuming this is a population of returns, not a sample – that is, use the procedure describedin the textbook for calculating the standard deviation of a series of stock returns).27. The end of year stock price and the dividend paid each year for Maxwell, Inc. stock for years 0 through 6 arelisted in the table below: Year -End of Year Stock Price- Dividend0 $12.00 $ 01 $14.86 $1.802 $7.95 $1.883 $8.00…The following return series comes from Global Financial Data. Year Large Stocks LT Gov Bonds US T-bills CPI (Rf asset) (inflation) 2017 21.83% 6.24% 0.80% 2.07% 2018 -5.28% -1.25% 1.81% 2.10% 2019 25.45% 3.35% 2.15% 1.10% 2020 18.16% 10.25% 4.50% 1.88% 2021 28.70% -1.54% 0.40% 7.00% 2022 -19.78% -8.55% 2.20% 6.50% Calculate the average nominal return earned on large-company stocks. (Enter percentages as decimals and round to 4 decimals)The following return series comes from Global Financial Data. Year Large Stocks LT Gov Bonds US T-bills CPI (Rf asset) (inflation) 2017 21.83% 6.24% 0.80% 2.07% 2018 -5.28% -1.25% 1.81% 2.10% 2019 25.45% 3.35% 2.15% 1.10% 2020 18.16% 10.25% 4.50% 1.88% 2021 28.70% -1.54% 0.40% 7.00% 2022 -19.78% -8.55% 2.20% 6.50% Calculate the average real return earned on US T-bills. (Enter percentages as decimals and round to 4 decimals)
- Over the last 10 years, a firm has had the earnings per share shown in the following table: Year Earnings per share Year Earnings per share 2022 $4.65 2017 $2.58 2021 $3.78 2016 $1.17 2020 $3.12 2015 $1.31 2019 $2.82 2014 −$1.98 2018 $3.97 2013 $ a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2017? b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2017? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend…Returns for the Alcoff Company over the last 3 years are shown below. What's the standard deviation of the firm's returns? Year Return2010 21.00%2009 −12.50%2008 25.00%Given the following possible returns (dividends plus capital gains) over the coming year from P100,000 investment in General Motors common stock: State of Economy Profitability ReturnRecession 0.20 P-1,000 Normal year 0.60 1,500Boom 0.20 2,500What is the standard deviation of returns?
- In the year 2016, Al-Jazeerah and Company's shares traded at $ 30 per share; this is a 25%the decline from its peak. Forecasted earning per share for 2016 & 2017 were $3.05 & $3.2 . Adividend of $ 0.5 per share was indicated for the fiscal year 2017.(a) Calculate AAA's normal forward P/E and the forward P/E it traded in 2016.Use a required rate of return of 10%. (b) Calculate the intrinsic P/E implied by the analyst' forecasts with the assumption thatthere will be no abnormal earning growth after 2018.(c) Explain why an analyst prefers a leading P/E ratio over a trailing P/E ratio? (d) Explain why a normal forward P/E ratio and a normal trailing P/E ratio always differ by 1.(e) Explain why Interest payment should not be part of cash flow from operations. (f) Explain why might a firm trade at a price to book ratio greater than 1?Over the last 10 years, a firm has had the earnings per share shown in the following table: Years and Earnings per share 2022 4.35 2017 3.092021 4.95 2016 1.552020 3.24 2015 1.782019 2.67 2014 -1.922018 4.35 2013 0.96 . a) If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2018? $1.74 b) If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2018? (enter your response here) c) If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2018? (enter your response here) d) Discuss the pros and…Campbell Supper Co. paid a $0.672 dividend per share in 2013, which grew to $0.82 in 2016. This growth is expected to continue.What is the value of this stock at the beginning of 2017 when the required return is 8.4 percent? (Round the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.) Stock value _____.__