Simpson Inc. stock provided a return of 8.0%, 15% and -8% returns in the past three years. What is the expected return on stock thisstock?5.00%5.13%5.30%5.60%6.03%Next

Expected return on the stock is the average rate of return earned on the investment and is the…

Answered: Simpson Inc. stock provided a return of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Cincy Machinery stock currently sells for $104 per share. The market requires a return of 13 percent while the company maintains a constant 6 percent growth rate in dividends. What was the most recent annual dividend per share paid on this stock (that is, this year's dividend)? Group of answer choices $7.28 $7.81 $6.87 $8.61 $6.22
A stock had returns of 15.47 percent, 22.38 percent, −8.49 percent, and 9.42 percent over four of the past five years. The arithmetic average return over the five years was 12.68 percent. What was the stock return for the missing year? a. 22.16% b. 19.70% c. 11.94% d. 24.62% e. 7.64%
A stock just paid a dividend of $1.51. The dividend is expected to grow at 21.84% for two years and then grow at 3.90% thereafter. The required return on the stock is 11.25%. What is the value of the stock?
What is the SD for a stock that has annual returns for 4 years 6%,-4%,8% and -12%? 9.0 9.3 9.6 8.3 8.7
J Pinkman Motors paid a dividend of $ 3.75 last year. If J Pinkmans return on equity is 24% and its retention rate is 25%, what is the value of the common stock if investors require a 20% rate of return? a. $ 38.39 b. $18.39 c. $82.39 d. $ 28.39
A stock just paid a dividend of $1.05. The dividend is expected to grow at 27.09% for three years and then grow at 4.20% thereafter. The required return on the stock is 10.14%. What is the value of the stock?
The rates of return on Cherry Jalopies, Incorporated, stock over the last five years were 16 percent, 11 percent, −1 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company’s stock were 16 percent, 22 percent, −1 percent, 5 percent, and 12 percent. What was the arithmetic average return on each stock over this period? Note: Enter your answers as a percent rounded to 1 decimal place.
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What is the value of a stock with the following dividends, an 8.5% discount rate, and a growth rate of 6% (beginning in year 6)? (Round to the nearest dollar) Year Dividends $120 $99 $110 $80 $85 1 $2.16 2 $2.38 3 $2.61 4 $2.87 5 $3.16
Company B's dividends were; $2 eight years ago, $2.15 seven years ago, $1.95 six years ago, $2.20 five years ago, $2.30 four years ago, $2.38 three years ago, $2.45 two years ago, $2.15 last year and just paid $2.35. If the required rate of return is 8%, what should the current price of stock be?

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Simpson Inc. stock provided a return of 8.0%, 15% and -8% returns in the past three years. What is the expected return on stock this stock? 5.00% 5.13% 5.30% 5.60%