PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Chapter 11, Problem 5FPE
Summary Introduction
To discuss: The best plan and the alternative plans for Person and family.
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Students have asked these similar questions
Amazon.com Incorporated reported the following stock price at the beginning
of each year since 2012. Using 2012 as the base year, develop a simple index
for stock prices.
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Stock Price
to Open
Year
$175.89
256.08
398.80
312.58
656.29
757.92
Click here for the Excel Data File
What is the percentage increase in price over the 10-year period?
Note: Round your answers to 2 decimal places.
1,172.00
1,465.20
1,875.00
3,270.00
Base 2012
Based on five years of manthiy data, you derive the following information for the companies listed:
Company
a (Intercept)
Intel
0.24
11.00 %
0.67
Ford
0.13
13.0
0.20
Anhauser Busch
0.16
6.40
0.0
Merck
0.06
10.20
0.60
Sa S00
0.00
4.30
1.00
a. Compute the beta coefficient for each stock. Do not raund intermediate calculations. Round your answers to three decimal places.
Intel:
5.091 X
Ford:
0.538 X
Anheuser Busch:
Merck:
2 x
Using Microsoft Office / Excel 365 STOCKHISTORY and FORECASTING functions available, prepare a line
graph of the weekly share price history (from 1/7/2022 to 31/3/2024) for any two (2) listed companies that
you have been allocated (separate graphs). Forecast the share price for the next 6 months (i.e
., 30/9/2024). Please note, graphs should also include a trendline and formula. Predicted weekly share
price figures should be shown using the FORECAST SHEET function or FORECAST formula function
available.
Chapter 11 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
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- Currently, the Dow Jones Industrial Average is computed by. O adding the prices of 30 large "blue-chip" stocks and dividing by 30 calculating the total market value of the 30 firms in the index and dividing by 30 O measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day O adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends CURATENILE O D KARAT HILLUE (4-3-3M TALLIALAN JNT O 5 E Some s 8 SEM t O O 22000 220- NE SASTANAEVE 1 Ōarrow_forwardBelow is pertinent information regarding SM Investments Corporation (SM). If you were an Investment Advisor, what would be your recommendation for SM using Fundamental Analysis? (Note: complete the table, then compute for the target prices for 2016 and 2017 based on P/E and P/B ratios, then make your recommendation.) STOCK DATA Last Traded Price (10/7/16) 675.00 Outstanding Shares (Million) 1,204 FORECAST SUMMARY (PHP 2015Actual 2016Forecast 2017Forecast MIL) Revenues 295,878 323,008 347,867 EBITDA 68,270 76,428 84,038 Net Profit 28,455 32,334 35,675 Book Value 427,103 300,554 324,598 Industry P/E 19.9 19.1 17.5 Industry EPS Growth 9.0% 4.0% 9.0% Industry P/B 2.0 2.1 1.9 Industry ROE 12.0% 12.1% 11.0% EPS PE Ratio BVS PB Ratioarrow_forwardOn a particular day, there were 3300 stocks that advanced on the NYSE and 1200 that declined. The volume in advancing issues was 500000000 and the volume in declining issues was 200100000. The trin ratio isarrow_forward
- You’ve collected the following information from your favorite financial website. 52-Week Price Stock (Div)Div Yld %PE Ratio Close PriceNet ChgHiLo77.40 10.43 Palm Coal 0.362.6 6 13.90 –0.24 55.81 33.42 Lake Lead Grp 1.543.8 10 40.43 –0.01 131.08 70.25 SIR 2.753.1 10 89.12 3.07 50.24 13.95 DR Dime 0.805.2 6 15.43 –0.26 35.00 20.74 Candy Galore 0.321.5 28 ?? 0.18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 21 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent indefinitely. Assume investors require a return of 15 percent on SIR stock. Requirement 1:According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations. Round your…arrow_forwardThe following are monthly percentage price changes for three market indexes Month DJIA S&P 500 Nasdaq 1 0.02 0.03 0.05 2 0.07 0.07 0.23 -0.02 -0.02 -0.05 0.01 0.0 0.05 5 0.05 0.05 0.13 6-0.06 -0.04 -0.06 What is the covariance between the rates of return for S&P 500 and Nasdaq? 4 Oa. 0.0041 The following are monthly percentage price changes for three market indexes Month DJIA S&P 500 Nasdaq 1 0.02 0.05 0.07 0.2 -0.02 -0.05 0.01 0.05 5 0.05 0.13 6 -0.06 -0.06 What is the covariance between the rates of return for S&P 500 and Nasdaq? 2 3 4 a 0.0041 0.03 0.07 -0.02 0.03 0.05 -0.04arrow_forwardCurrently, the Dow Jones Industrial Average is computed by. O adding the prices of 30 large "blue-chip" stocks and dividing by 30 calculating the total market value of the 30 firms in the index and dividing by 30 O measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day O adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends CURATENIE O D KARAT HILLUE 14-7-2M TALIALAAN JANT O 5 E skome s 8 SEM t O O 22000 220- NE KASTAMAEVE 1 Ōarrow_forward
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