Amazon.com stock prices gave a realized return of 20%, 12%, 12%, and -12% over four successive quarters. What is the annual realized return for Amazon.com for the year? OA. 8% B. 4.08% OC. 6.53% OD. 4.69%

Q: Mount Rainier stock returned 16.6 percent, 3.2 percent, -8.1 percent, and 9.8 percent over the past…

A: Return refers to the income earned throughout the period on an investment, It includes the cash…

Q: Calculate the correlation coefficient (PAB) for the following situation: (Round intermediate…

A: Variables in the question:Let us denote expected return on stock A=Xand expected return on stock B=Y…

Q: The rates of return on Cherry Jalopies, Inc., stock over the last five years were 23 percent, 11…

A: Answer: Calculation of the Geometric return: Formula,  Geometric return = [(1+ Return 1)*(1+Return…

Q: Three years ago, Green Thumb Industries (ticker symbol: GTBIF) had a stock return of 17.11%. What is…

A: Standard deviation is the variability in the stock returns over a period of time. The standard…

Q: Assume ZYX stock generated earnings of $1.75 per share this year. What should the stock price be if…

A: Earning per share = $ 1.75 Payout ratio = 40% Dividend per share (D0) = 1.75*0.40 = $ 0.70 Annual…

Q: Baskin Corp. has just paid a quarterly dividend of $0.35. Analysts expect dividends to grow by 4.5%…

A: By using the dividend discount model, the value of the stock today can be found by using the current…

Q: The current book value per share of B.L. Black & Sons is $4.5 and the required return on the stock…

A: Return on Equity (ROE) = (Expected earnings per share / Book value per share )  x100=>ROE =…

Q: BIG TECH Inc. sells at $40 per share, and its latest 12-month earnings were   $8 per share, of…

A:

Q: The annual returns for Kang Co. stock for the last three years were 6 percent, −12 percent, and 19.3…

A: Holding period return is the return of the asset that can be expected by an investor for holding…

Q: Soju Ltd is currently trading at $39, and recently paid an annual dividend of $4.5. If it is…

A: Last dividend (D0) = $4.5 Stock price (P0) = $39 ROE = 8% Retention ratio = 30% Growth rate (G) =…

Q: s. What is the geometric average return for this time period?

A: Geometric Average: It is the average return for a set of values computed with the products of the…

Q: Apple Inc. (AAPL) is expected to pay a dividend of $1.59 at the end of the year. AAPL’s dividend…

A: A Stock of an equity share is a capital market security that offers the investor the ownership…

Q: A company's current stock price is $50 per share, while investors' required return is 12.00%. If the…

A: Here we will use the dividend discount model. As per the dividend discount model, the value of a…

Q: The S&P 500 index delivered a return of 20%, -5%, 20%, and 5% over four successive years. What is…

A: It is the sum of the annual returns divided by the number of returns. The arithmetic average is also…

Q: Ten annual returns are listed in the following table: (Click on the following icon in order to copy…

A: We invest in different types of financial securities like equities, bonds etc. We make the…

Q: Q4. Firm DEF has just paid a quarterly dividend of $3.75. Dividends are expected to grow by 10% for…

A: Gorden model Horizon value = Dividendn / ( Required return - Growth rate )

Q: You bought a stock for $76.81 and sold it after 4 years for $100.37. What is the average compound…

A: Compound annual growth rate (CAGR) is the average return on the investment which is there for more…

Q: A company's earnings and dividends are growing at a constant rate of 6.5 percent. Last week it paid…

A: > Given data:> Growth rate = 6.5%> Required return = 12%> Expected dividend =…

Q: 3D printing Corp paid a dividend yesterday of $1 per share. The dividend is expected to grow at…

A: Present value of the stock is the discounted value of all future earnings from the investment in…

Q: A stock investment generated the following annual (total) returns over these 3 years: • 2015: 20% •…

A: The geometric average return is a method of calculating the average rate of return on an investment…

Q: 4) Amazon.com stock prices gave a realized return of 15%, 15%, -15%, and -15% over four successive…

A: Time-weighted return takes compounding effect into calculation. In other words, time-weighted return…

Q: A company currently has an EPS of $5.28 and an annual earnings growth rate of 8.2%.  If the…

A: All the present cash flows are compounded sequentially till the future time using the rate in order…

Q: Mount Rainier stock returned 16.6 percent, 3.2 percent, -8.1 percent, and 9.8 percent over the past…

A: Arithmetic average return can be found by using the following formulaArithmetic average return =…

Q: Kramerica Industries paid $3.00 per share in dividends yesterday. Its dividends are expected to grow…

A: Solution:Dividend Discount Model (DDM) is the equity model to determine the current share price.As…

Q: Compute each stock's average return, standard deviation, and coefficient of variation. (Round your…

A: Return The profit or loss an investor makes from an investment is called a return. All investors'…

Q: XY2, Inc. Year ABC XYZ 2010 8% -3% 2011 20% 0% 2012 -8% 20% 2013 4% 8% v (a) What is the average…

A: Average return = Using excel AVERAGE function Year ABC 2010 8% 2011 20% 2012 -8% 2013 4%…

Q: Ten annual returns are listed in the following table: (Click on the following icon in order to copy…

A: Arithmetic average is simple average and can be obtained by adding and dividing by the total number.

Q: Using the data shown in the table​ below that contains historical monthly prices and dividends​…

A: The average monthly return of an investment is a measure that indicates the average rate of return…

Q: Financial analysts forecast GDY Inc.’s growth for the future to be 5%. GDY's recent annual dividend…

A: The stock value can be calculated with the help of dividend growth model

Q: Over the last 10 years, a company has had an average share price of $11.72 and average earnings per…

A: The expected stock price is the price at which a stock will be traded at a future date. The stock…

Q: Pm.7   Suppose a company is expected to grow at 25% for the next two years and then will have a…

A: Current dividend = $0.751st stage growth rate= 25%2nd stage growth rate =8%Required rate=10%

Q: Give correct typing answer with explanation

A: One share of this stock is worth approximately $28.04 when the required rate of return is 13%…

Q: Great Lakes health pty common stock offers an expected total returns of 9.2%. The last annual…

A: We need to use dividend growth model equation below to calculate stock price. Thereafter, dividend…

Q: Apple Inc. is expected to pay a dividend of $1.57 at the end of the year. The required rate of…

A: To calculate the stock's price we will use the below formula   Stock's price = D1/(r-g) Where D1 -…

Q: The common stock of Air United, Inc., had annual returns of 15.6 percent, 2.4 percent, -11.8…

A: Standadrd deviation can be found by using the following formulaStandard deviation = d= deviation…

Q: Amazon.com stock prices gave a realized return of 4%, -4%, 9%, and -9% over four successive…

A: In this question, we are required to calculate the annual rate of return.

Q: Company Z's earnings and dividends per share are expected to grow indefinitely by 4% a year. If next…

A: Dividend is the part or share of profits that is being distributed to the shareholders of the…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.