Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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- (Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 926. If the average dividend paid on the stocks in the index is approximately 4.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? Question content area bottom Part 1 The rate of return earned on the S&P 500 is enter your response here%. (Round to two decimal places.)arrow_forward(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1.410 and on December 24, 2008, the index was approximately 896. the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year what is the rate of return eamed on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the retums of the index)? The rate of retum eamed on the S&P 500 is (Round to two decimal places) CITESarrow_forward(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 852. If the average dividend paid on the stocks in the index is approximately 3.5 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? ... The rate of return earned on the S&P 500 is %. (Round to two decimal places.)arrow_forward
- The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 927. If the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? Question content area bottom Part 1 The rate of return earned on the S&P 500 is enter your response here %. (Round to two decimal places.) Part 2 What is your assessment of the relative riskiness of investing in a single stock, such as Google, compared to investing in the S&P index? (Select the best choice…arrow_forwardNikul Don't upload image pleasearrow_forwardAssume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Shares Outstanding Beginning Price per Share .End of of Year Year Kirk, Inc. 32,000 Picard Co. 31,000 $ 39 74 $ 43 79 Return 7.99 %arrow_forward
- Can you please answer the general accounting question?arrow_forwardThe S&P 500 Index represents a portfolio comprised of 500 large publicly traded companies. A year ago the index had a value of $4,677, and today the index has a value of $3,824. If the average dividend paid on stocks is 4% of the value of the index at the start of the year, what is the rate of return on the index? a. 18.24% gain b.14.24% gain c.14.24% loss d. 18.24% loss a.. b.. C. . O d..arrow_forwardAssume that the stock market index is trading at a level of 4,500. You can interpret this index level as a scaled price that was set at some point to 100 and appreciates as the stocks included in the index appreciate. The long-term risk-free rate is 1.3%. The aggregate earnings (scaled in the same way as the index level) of the firms in the stock market index are expected to be 132 next year and the payout ratio (dividends as a percentage of earnings) has been 45% and is expected to remain 45%. What additional assumptions can justify the stock market index level of 4,500? Show your calculations and explain your reasoning carefullyarrow_forward
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