A stock has had the following year-end prices and dividends: Year Price Dividend $16.25 1 18.43 $ .15 19.43 .30 •33 .34 3 17.93 4 20.27 23.38 .40 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Arithmetic return % Geometric return %
Q: What is the present worth equivalent of the machine considered to be the most preferred choice? (i=1...
A: Before investing in new projects, profitability of the project is evaluated by using various methods...
Q: Project A costs $67,775, its expected net cash inflows are $10,000 per year for 10 years, and its WA...
A: Cost of project = $ 67,775Expected net cash flow per year = $ 10,000WACC = 8% NPV = Present value of...
Q: 5. Patterson Co. is considering a project that has the following cash flow cost of capital (r) data....
A: Net present value is the difference between the present value of cash flow and the initial investmen...
Q: What is your expected annual rate of return for this portfolio: stock A 1000 shares at $22/share exp...
A: Given, Stock A has 1000 shares at $22/share Stock B has 750 shares $11.50/share Bond $25000 Money ma...
Q: You have RM9,000 that you plan to invest in a compound interest bearing instrument. Your investment ...
A: Amount to be invested is RM9,000 Case -1 Interest rate is 8% Compounded semi-annually Case-2 Intere...
Q: You have found three investment choices for a one-year deposit: 9.1% APR compounded monthly, 9.1% AP...
A: Solution:- Effective Annual Rate (EAR) means the effective rate for a year after effect of all the c...
Q: A logistics firm is planning to acquire a winching machine which costs $85000 having life span of 6 ...
A: Present value of future amount With interest rate (r), period (n) and future value (FV), the present...
Q: A Canadian company is considering the purchase of a $7000 machine for their shop. The machine belong...
A: Present worth is the sum total of all the present value of net cash outflows and inflows discounted ...
Q: A man invests in a project that requires a fixed capital of P 2.5 M with no salvage, and life of 12 ...
A: Here, Initial Investment is P2,500,000 Salvage Value is 0 Life is 12 years Annual Maintenance Cost i...
Q: You expect to retire in 25 years. After you retire, you want to be able to withdraw $3000 dollars fr...
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at t...
Q: A real estate developer bought land for $170000.00 down and monthly payments of $10550.00 for 10 yea...
A: The loans are paid by monthly equal instalments these carry the payment for the interest and payment...
Q: actively targeted at 2.2. The debt beta is estimated to be 0.28 in both old and new leverage levels....
A: A company having both debt and equity in its capital structure is known as a levered company. A leve...
Q: An item will need replacing in 6 years from now at a cost of ₱128,000.00. How much should the owner ...
A: Solution:- When an equal amount is saved each period at beginning of each period, it is called annui...
Q: Which costing system would be more efficient when direct materials and direct labor costs are high, ...
A: There are mainly two types costing method Traditional costing Activity based costing
Q: Westco Co. issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semiannua...
A: A Bond refers to an instrument that represents the loan being made by the investor to the company an...
Q: You can buy a carton of three 32-ounce bottles of shower cleaner on sale for $5.00. The 64-ounce "re...
A: Price of a carton of three 32-ounce bottles of shower cleaner = $ 5.00Price of 64-ounce "refill" siz...
Q: 4) An n-year loan involves payments of $800 at the end of each month. The interest rate is 12% conve...
A: Here, Monthly Payment is $800 Interest Rate is 12% Compounding Period is Monthly i.e. 12 Interest on...
Q: You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. The s...
A: Tax shield on depreciation =(6,300,000/4)*(0.36) 567000 After tax lease payment = 1745000*(1-0.36)...
Q: If the first increment (B-A) AROR is 6.3%, and 2hd increment (C-B) AROR is 3.1%. The best alternativ...
A: Incremental rate of return Analysis It is the analysis of financial return to investor where ther...
Q: What perpetual amount will you receive annually starting next year if you were able to deposit 130,...
A: Here, Amount Deposited five years ago is 130,000 Interest Rate is 10.5% Compounding Period is Annual...
Q: Crane Corp. management is considering purchasing a machine that will cost $117,250 and will be depre...
A: Working Note #1 Calculation of depreciation: Cost of machine = $117,250 Useful life = 5 years Formul...
Q: Big Industries has the following market-value balance sheet. The stock currently sells for $20 a sha...
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...
Q: If $10.000 is borrowed at 10% p.a. interest to be paid back over 10 annual installment, how much of ...
A: Loan is a value which is borrowed from external sources for a certain period of time. This amount is...
Q: do you think that the collaboration between Central Banks and Government creates challenges for supp...
A: If a country's economy were a human body, the central bank would be its heart. And, just as the hear...
Q: hat was the amount of each payment
A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed ...
Q: The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amoun...
A: Annual Equivalent cost is the annual amount of expenditure incurred each year resulting in total pre...
Q: Compute for the Average Collection Period, use 360 days Final answers should be in 2 decimal places ...
A: In finance we often use the average collection period as one of the financial metrics. This metric ...
Q: Mr. Cruz agreed to settle a debt by making 12 quarterly payments of P 450 each. If he failed to make...
A: Quarterly payment (Q) = P 450 n = 12 payments r = 8% per annum = 2% per quarter Let X = Debt amount
Q: An investment of $100,000 in safe 10-year corporate bonds yields an average of 9% per year, payable ...
A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...
Q: BHP Billiton is the world's largest mining firm. BHP expects to produce 2.25 billion pounds of coppe...
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...
Q: The expected value of a normal distribution of prices for a stock is $71. If you are 99 percent sure...
A: The normal distribution is assumed than it follows the probability of stock prices can be found from...
Q: annually. Payments will be made at the end of each year. Find the total value of the annuity in 16 y...
A: Future Value of Annuity: It represents the future worth of the present annuity cash flow stream. It...
Q: Having achieved immense success since graduating from university, you have set up an endowment fund ...
A: Amount deposited today (A0) = $100000 Growth rate (g) = -2% r = 10%
Q: Keisha is taking out an amortized loan for s85,000 to open a small business and is deciding between ...
A: Amortization is an accounting technique accustomed to sporadically lowering the book value of a loan...
Q: The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amoun...
A: Cost in year n = Cn C2 = P 8000 C6 = P 10000 Uniform increase in cost = (10000 - 8000) / (6 - 2) = P...
Q: 3. Rey borrowed P 40,000 at 12 % compounded semiannually. He agreed to pay the lender semiannually a...
A: Given that equal amount shall be paid till the end of 8th year and 6000 shall be paid at the end of ...
Q: antha lives under an imputation tax system. Her income tax rate is 35%, which applies to all of her ...
A: The companies pay dividend out of the net income and this is paid to shareholders but shareholder ha...
Q: If money is worth 5% compounded semi-annually, find the present value of a sequence of 12 semi-annua...
A: Present value of sequence is value today considering the interest rate and the period of annuity and...
Q: tment of $100,000 in safe 10-year corporate bonds yields an average of 9% per year, payable 10 years...
A: Real interest rate after tax = (Nominal interest rate before tax * (1 - Tax rate)) - Inflation rate ...
Q: How much would you be willing to pay for this investment if you required a 12 percent rate of return...
A: Present Value of Annuity: It represents the present worth of the future annuity stream of cash flow...
Q: Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded semi-...
A: Answer a:- The future value of an investment is calculated using the following formula:- Future valu...
Q: An annuity due typically has a higher present value than an ordinary annuity. • True O False
A: Since you have posted a question with multiple questions, we will solve the first question for you. ...
Q: 2. You invested $39,000 in Yug Industries at an annual interest rate of 5% compounded continuously. ...
A: Formula Future value = PV*ert Where PV - Investment amount i.e. $39000 e - Euler's number i.e. 2.718...
Q: According to the promissory note below, answer the following questions (Refer to the pic attached) ...
A: Maker is the person who is supposed to pay the amount and Payee is the person to whom amount is to b...
Q: ery month. What is the APR?
A: APR is annual percentage rate of credit card which is charged based on monthly basis interest rate.
Q: your required return is 7.32% how would adding ETFS with average annual returns that are expected to...
A: Meaning of ETFs( Exchange traded funds) This is a bunch of securities which is responsible for the ...
Q: To help with his child's college fund, Ravi needs to invest. Assuming an interest rate of 2.23% comp...
A: Interest Rate 2.23% Time Period 15 Future Value $ 94,300.00
Q: Consider the following four debt securities, which are identical in every characteristic except as n...
A: Here, W is a corporate bond rated AAAX is a corporate bond rate BBBY is a corporate bond rated AAA ...
Q: in order to have a fund of 1,000,000 at the end of 12 years, equal deposits every six months must be...
A: Future value of sequence of periodic payments consists of payments made and interest accumulated ove...
Q: A project requires an initial outlay of $80000 and produces a return of $20000 at the end of year 1,...
A: Solution:- Internal Rate of Return (IRR) means the rate at return the project is yielding. At IRR, N...
Step by step
Solved in 2 steps with 2 images
- A stock has had the following year-end prices and dividends: Year Price 0 012345 1 $ 15.00 17.18 18.18 16.68 19.02 22.13 Dividend $ 0.15 0.38 0.40 0.42 0.48 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Arithmetic return Geometric return % %A stock has had the following year-end prices and dividends: Year 0 1 2 3 4 5 Price $16.50 18.68 19.68 18.18 20.52 23.63 Dividend $ 0.15 0.35 0.37 0.38 0.45 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.A stock has had the following year-end prices and dividends: Year Price 1 $65.03 23456 71.90 77.70 63.97 74.51 86.75 Dividend - $.74 .79 .85 .94 1.01 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return Geometric average return % %
- A stock has had the following year-end prices and dividends: Year Price Dividend 0 $ 43.29 - 1 48.27 $ .48 2 57.19 .51 3 45.27 .60 4 52.19 .65 5 61.27 .73 What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return % Geometric average return %A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.23271.10 $.58 3 76.90.63 4 63.17 .69 5 72.91.78 6 78.75 .85 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.93 — 2 71.80 $ .72 3 77.60 .77 4 63.87 .83 5 74.31 .92 6 85.75 .99 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
- A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.43 — 2 71.30 $ .62 3 77.10 .67 4 63.37 .73 5 73.31 .82 6 80.75 .89 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return % Geometric average return %A stock has had the following year-end prices and dividends: Price $64.68 Year 1 2 3 4 6 71.55 77.35 63.62 73.81 83.25 Dividend Arithmetic average return Geometric average im $.67 .72 .78 .87 94 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. 1%A stock has had the following year-end prices and dividends: Year 123456 Price $ 65.08 Dividend 71.95 $ .75 77.75 .80 64.02 .86 74.61 .95 87.25 1.02 Check my work What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Arithmetic average return Geometric average return % %
- A stock has had the following year-end prices and dividends: Year 1234 in 10 5 6 Price $64.68 71.55 77.35 63.62 73.81 83.25 Dividend Arithmetic average return. Geometric average return $.67 .72 .78 .87 .94 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16. % %A stock has had the following year-end prices and dividends: Year Price Dividend 1 $43.33 2 48.31 $0.54 3 57.23 0.57 4 45.31 0.80 5 52.23 0.85 6 61.31 0.93 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Arithmetic return Geometric return % %1. A stock has had the following year-end prices and dividends: Year Price ($) 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).