Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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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
Determine the approximate percentage appreciation or depreciation of the NASDAQ Composite, Dow Jones Industrial Average, and the S&P 500 for the last 12 months and provide these figures. In addition to showing the percentage change of each index for the last 12 months, also supply the current value of each index.
Chapter 11 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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- The Bloomberg screen below shows the Nasdaq Index price over the last year. Describe the technical indicator used from the chartist and what trade signal it may suggest. CCMP €T On 03 CCMP Index 11/04/2020 Study RSI 1D 3D 1M 6M YTD 1Y 5Y Max Daily Volume 1.000B IRSI (14) on Close (CCMP) 75.3572 Nov C 15811.58 +161.98 Nov 0 15658.52 H 15821.58 L 15616.44 Prev 15811.58 94) Suggested Charts 96) Actions 97) Edit 11/04/2021 Last Px Local CCY Mov Avgs Period 14 Overbought 70 Oversold 30 1 Table + Compare ▾ Add Data Track Annotate News Zoom Key Events 2020 Dec Jan Feb Mar Apr May Jun 06/03/21 Jul Aug Relative Strength Index ไปได้ Sep Edit Chart * Oct 15811.5801 15013.0596 14198.1699 Last Price THigh on 11/03/21 Average 15811.5801 15821.5801 12000 13839.5049 Z-VOU 1 Low on 11/04/20 11394.21 11075.4473 ISMAVG (50) on Close 15013.0596 SMAVG (100) on Close 14805.082 SMAVG (200) on Close 14198.1699 13000 10000 3B 2B 1.000B -0 100 75.3572 -50 -0arrow_forwardUsing 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.arrow_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 common measure of market breadth is __________.arrow_forward
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- Below 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_forwardYou’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_forwardBased on five years of monthly data, you derive the following information forthe companies listed: Company SDi rm Padma 11.10% 0.82 Meghna 12.60% 0.63 Jamuna 6.60% 0.45 Karnafully 9.70% 0.70 SD on Market 7.60% 1.00 Compute the beta coefficient for each stock.arrow_forward
- On 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_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_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_forward
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