(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 avalue of 1,410 and on December 24, 2008, the index was approximately 921. If the average dividend paid on the stocks in the index is approximately 4.0 percent of thevalue of the index at the beginning of the year, what is the rate of retum eamed on the S&P index? What is your assessment of the relative riskiness of investing in asingle 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)?KIYDThe rate of return earned on the S&P 500 is % (Round to two decimal places.)

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Managerial Accounting

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ISBN:9781337912020

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Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

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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.)
(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 913. 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)? CITE The rate of return earned on the S&P 500 is%. (Round to two decimal places.)
(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) CITES
(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.)
The 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..
Assume 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 carefully
The preferred stock of Axim Corp. is currently selling at $51.07. If the required rate of return is 11.7 percent, what is the dividend paid by this stock? (Round answer to 2 decimal places, e.g. 15.25.) Dividend paid $ ________
The dividend of a stock is expected to be $3.3/share in this period. The current price of the stock is $66.2/share. Its price is expected to be $69.8/share at the end of the period. The expected return rate of the stock in this period is %. (Hints/Example]
As of February 2010, what is your assessment of the worth of Wal-Mart’sstock? Utilize all of the methods discussed in the case to value the shares,including the following:a. The perpetual growth in dividendsb. Forecasted dividends for the next several years plus sale of the stock in thefuture
The CWI for common stocks (S&P 500) for 1926-2010 (85 years) was $5364.78 based on a geometric mean of 9.6% for that period. The average dividend yield for those 85 years was 5.99 %. a) Calculate the CDY b) Calculate cumulative price change
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $12, $19, and $56. The number of outstanding shares for each is 619,000 shares, 472,000 shares, and 192,000 shares, respectively. If the stock prices changed to $18, $30, and $68 today respectively, what is the one day rate of return on the index? Multiple Cholce 33.64% 41.29% 28.13% 23.73%
1. JL stock was priced at $24.7, $24.15, $23.99, and $24.26 at the end of Years 1 to 4, respectively. The annual dividend is constant at $.20 a share. What is the geometric average return on this stock?

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