Homework #5E (HPR Annualized holding period return Effective annual rate on investment) 2 (002)
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Jan 9, 2024
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Question 1 (1 point) + Saved The prices for the White Swan Corporation for the first quarter of the last year are given below. Find the holding period return (percentage return) for February. End of the month Stock price January $90.44 February $102.17 March $98.47 Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: 13.00 J { % J Answer units Question 2 (1 point) Saved You purchased 100 shares of General Motors stock at a price of $99.22 one year ago. You sold all stocks today for $100.30. During the year, the stock paid dividends of $3.03 per share. What is your holding period return? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: 4.14 ‘ % Answer units
Question 3 (1 point) Saved Sarah purchased 100 shares of General Electric stock at a price of $58.62 three months ago. She sold all stocks today for $61.32. During the year the stock paid dividends of $4.47 per share. What is Sarah’s holding period return Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: 12.23 ‘ % Answer units
Question 4 (1 point) Saved You purchased 250 shares of General Motors stock at a price of $75.07 two years ago. You sold all stocks today for $78.61. During this period the stock paid dividends of $3.51 per share. What is your annualized holding period return (annual percentage rate)? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: 470 ‘ { % } Answer units Question 5 (1 point) Saved You purchased 300 shares of General Electric stock at a price of $79.34 four years ago. You sold all stocks today for $60.16. During that period the stock paid dividends of $3.05 per share. What is your annualized holding period return (annual percentage rate)? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: -5.10 ‘ Ancwer tinite Question 6 (1 point) Saved John purchased 100 shares of Black Forest Inc. stock at a price of $157.51 three months ago. He sold all stocks today for $159.15. During this period the stock paid dividends of $5.57 per share. What is John’s annualized holding period return (annual percentage rate)? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: 18.31 H % Answer units
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Question 7 (1 point) Saved Mary purchased 100 shares of Sweet Pea Co. stock at a price of $43.18 six months ago. She sold all stocks today for $43.41. During that period the stock paid dividends of $2.32 per share. What is Mary'’s effective annual rate? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: 1220 J ‘ % J Answer units Question 8 (1 point) Saved Tom purchased 100 shares of Dalia Co. stock at a price of $121.71 four months ago. He sold all stocks today for $127.48. During the year the stock paid dividends of $6.97 per share. What is Tom’s effective annual rate? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: 35.00 ‘ % Answer units
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Part 1
(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle Company had the following end-of-year stock prices over the last five years and paid no cash dividends:
Time
Brangus cattle Comapny
1
$
16
2
8
3
14
4
21
5
25
(Click on the icon in order to copy its contents into a spreadsheet.)
a. Calculate the annual rate of return for each year from the above information.
b. What is the arithmetic average rate of return earned by investing in Brangus Cattle Company's stock over this period?
c. What is the geometric average rate of return earned by investing in Brangus Cattle Company's stock over this period?
d. Which type of average rate of return best describes the average annual rate of return earned over the period (the arithmetic or geometric)? Why?
Question content area bottom
Part 1
a. The annual rate of…
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Consider the following information on the stock market in a small economy.
Shares
Company Outstanding Price, beginning of year Price, end of year
1
100
10
2
1,000
points
3
10,000
$ 100
$ 20
$ 3
$ 94
$ 25
$ 6
Help
Save & Exit
Submit
eBook
References
Instructions: Enter your responses rounded to one decimal place.
a. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?
The percentage change is |
%.
b. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?
(Note: The value of a firm is calculated by multiplying the number of its shares by the prices of those shares.)
The percentage change is
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You have found the following historical information for DEF Company:
Year 2
Year 3
Year 4
Year1
Stock Price
$45.38
$54.31
$59.3
$50.08
EPS
$2.37
$2.4
$3
$3.48
Earnings are expected to grow at 8 percent for the next year. Using the company's historical average
PE as a benchmark, what is the target stock price in one year? Answer to two decimals.
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Multiple choice question.
$22.73
$25.00
$19.73
$18.18
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of share of $3.15 next year, earnings are
expected to grow at 3.75% over the next
several years and the forward PE is 18.9.
Glück's price is closest to:
O A. $57.38.
B. $59.54.
O C. $61.78.
10:13 PM
P Type here to search
10/18/2021
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K
Using the data in the table to the right, calculate the return for
investing in the stock from January 1 to December 31. Prices
are after the dividend has been paid.
Return for the entire period is%. (Round to two decimal places.)
Date
Jan 1
Feb 5
May 14
Aug 13
Nov 12
Dec 31
Price
$32.07
$29.54
$31.52
$30.69
$31.38
$41.26
ACCOR
Dividend
$0.21
$0.21
$0.22
$0.19
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Percent Change
Year
1
2
3
4
5
6
7
8
Stock Value
$80.00
92.00
107.00
128.00
145.00
250.00
400.00
670.00
%
V
b. Calculate the percentage change in the value of the stock across the entire 8-year period.
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&
%
4
V
N
%
O Yes, because the percentage change in the stock value is positive every year.
O No, because the percentage change in the stock value has not increased.
O Yes, because the percentage change in the stock value has increased greatly.
O No, because the percentage change in the stock value fluctuates up and down across the 8 years.
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Vinay
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are after the dividend has been paid. (Click on the following
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Return for the entire period is %. (Round to two decimal places.)
Date
Jan 1
Feb 5
May 14
Aug 13
Nov 12
Dec 31
Price
$32.09
$30.63
$31.95
$31.34
$36.15
$40.39
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$0.18
$0.18
$0.21
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YTD
%Change
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SYM
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YLD
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PE
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c. Net income
Net
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