Amazon.com stock prices gave a realized return of 4%, -4%, 9%, and -9% over four successive quarters. What is the annual realized return for Amazon.com for the year? 0.97% 0 0.00% 1.94% O-0.97%

Q: Blue Co. predicts that earnings and dividends will increase at a uniform rate of 5% per annum. The…

A: Growth rate (G) = 5% Dividend at the end of year (D1) = P 2.00 Dividend at the end of year 6 (D6) =…

Q: An investment has doubled in 8 years. What is the annually compounded rate of return? Select one:…

A: Period = 8 Years Investment value = 1 Future value = 2

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: Zzz corps stock price at the end of last year was 22.45 and its earnings per share for the year were…

A: P/E ratio means Price earnings ratio.P/E ratio =

Q: Find the real rate of return for the Costco stock you purchased for $166.80 five years ago, that has…

A: Computation:

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: Calculate the modified duration. A B C D E 100 105 110 115 120

A: A dividend is a payment made to shareholders by a company in the form of cash or extra stock. As…

Q: The Mobil Appliance Company’s earnings,dividends, and stock price are expected to grow atan annual…

A: The method used for estimating the price of a stock is known as the Dividend Discount Model: It is…

Q: The S&P 500 index delivered a return of 23%, ─10%, 25%, 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: BIG TECH Inc. sells at $40 per share, and its latest 12-month earnings were   $8 per share, of…

A:

Q: Using spreadsheet financial functions, calculate the following: Number of periods Petcom’s 2021…

A: Current EPS is $2 The growth rate is 9% per year To Find: Number of periods

Q: Year Return 1 234 0.08 (or 8%) 0.10 (or 10%) 0.15 (or 15%) 0.20 (or 20%) 0.10 10%)

A: Holding period return is rate of return realized during the period of holding of stock.

Q: You have found the following historical information for the Daniela Company over the past four…

A:

Q: Under peso-cost averaging, an investor will purchase P26,500 worth of stock each year for 5 years.…

A: The shares are the unit of equity ownership of a company. The company uses shares to issue capital…

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: d $100M in an investment whose annual standard deviation is 0.2. Compute the 1% VaR of this position…

A: VaR is value at risk of the company that has arisen due to volatility of the investment.

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 have found the following historical information for DEF Company: Stock Price Year1 Year 2 EPS…

A: calculating year by year P/E ratios

Q: 3. You were given the following market values for the stock of Gold Co., Inc. for the first 6 months…

A: A return that is earned by holding a security from starting to a specific time period is term as the…

Q: You have found the following historical information for the Daniela Company over the past four…

A: The objective of the question is to calculate the target stock price one year from today using the…

Q: The following information is for the next three problems.. Over the last four years ending July 1,…

A: Arithmetic average is the simplest average and can be obtained by adding all and divided by the…

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: Given the Term Structure below: 1 year = 3.6% 2 years = 4.4% 3 years = 5.5% 4 years = 6.5% 5 years =…

A: The expectations hypothesis of interest rates term structure represents the idea that the long-term…

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: What is the holding period return over the 10 weeks for the S&P 500? 3+ decimals  What is the…

A: Return means earn additional over the invested amount during the period. Holding period return…

Q: average monthly return?

A: Average Return: average return is the average expected return from an investment it is calculated…

Q: You purchased GameStock at $10 per share and exactly one year later you sold it fo $95.    What is…

A: Effective Rate refers to actual return that an investment will yield considering compounding factor…

Q: Your stock portfolio earned 3%, -12%, and 3% for the last three years. What is your annualized…

A: The annualized return for the last three years on arithmetic average is

Q: Ten annual returns are listed in the following table 19.9% 16.6% - 50.0% a. What is the arithmetic…

A: Arithmetic average return =  Total Return / Number of yearsResult:-Arithmetic average return = 8.05%

Q: Amazon.com stock prices gave a realized return of 20%, 12%, 12%, and -12% over four successive…

A: QuartersReturns10.220.123-0.124-0.12Required:Annualized Realized Return=?

Q: The company’s analysts predict that earnings and dividends will decline at a rate constant rate of…

A: Decline rate (S) = 5% Next year dividend (D1) = P 2.00 Dividend after 4 years (D4) = D1*(1-S)3…

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: Glück Enterprises anticipates earnings per of share of $3.15 next year, earnings are expected to…

A: Forward PE basically is the Price of the stock divided by the expected EPS.   Forward PE =…

Q: Amazos.com slock 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: (Related to Checkpoint 7.2) (Calculating the geometric and arithmetic average rate of return) Marsh…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Boehm Inc. is expected to pay a S1.50 per share dividend at the end of this year (i.e., D1 = S1.50).…

A: Value of the stock is referred as current price of the share which is the most recent selling price…

Q: - 19.6% 16.2% 18.3% - 49.8% 43.7% 1.1% - 16.4% . What is the arithmetic average return over the…

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

Q: GAZ COMPANY PAID DIVIDENDS LAST FOUR YEARS AS FOLLOWS YEARDIVIDENDS 1.7 2 2.5 3 2.2 3.3 THIS YEAR…

A: Gordon's constant growth model is a quantitative approach to determine the intrinsic price of the…

Q: Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net)…

A: Equity is the component which is shown on the balance sheet of an entity. It shows the amount…

Q: ver the next 4​ years, Gronk​ Co's earnings are expected to grow at an annual average rate of​ 7.5%…

A: PEG ratio is the calculation of P/E ratio based on the growth of the earnings…

Q: Over the next year, Rush Valley Corp. stock has a 20% chance of returning -4%, a 50% chance of…

A: The Expected Portfolio or the overall rate of return of the Portfolio is the total return which is…

Q: The stock of Nowhere Man, Inc. had earned 82% over the last 25 years. What annually compounded rate…

A: Annual Rate of Return refers to the percentage of profit generated from the investment of particular…

Q: Ten annual returns are listed in the following table. 1 -19.9% 2 % 3 4 16.7% 19% -50% % to 5 6 (a)…

A: Average rate of return is the simple average rate of return and computed as sum of all divided by…

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

A: The return on investment demonstrates the earning potential of the capital invested. The return…

Q: Today, Apple paid a $1.50 dividend (it pays dividends semi- annually). Future dividends are expected…

A: Dividend paid is $1.50 Dividend growth rate is 2% per semi annual period Effective semi annual rate…

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.