Growth rates Jamie El-Erian is a savvy investor. On January 1, 2010, she bought shares of stock in Amazon, Chipotle Mexican Grill, and Netflix. The table. Eshows the price she paid for each stock, the price she received when she eventually sold her shares, and the date on which she sold each stock. Calculate the average annual growth in each company's share price over the time that Jamie held its stock. The average annual growth for Amazon is%. (Round to two decimal places.) Data table Stock Amazon Chipotle Netflix Purchase price $135 91 15 Print C Selling price $997 291 235 Done Sale date January 1, 2020 January 1, 2018 January 1, 2019 X

Growth rates Jamie El-Erian is a savvy investor. On January 1, 2010, she bought shares of stock in Amazon, Chipotle Mexican Grill, and Netflix. The table. Eshows the price she paid for each stock, the price she received when she eventually sold her shares, and the date on which she sold each stock. Calculate the average annual growth in each company's share price over the time that Jamie held its stock. The average annual growth for Amazon is%. (Round to two decimal places.) Data table Stock Amazon Chipotle Netflix Purchase price $135 91 15 Print C Selling price $997 291 235 Done Sale date January 1, 2020 January 1, 2018 January 1, 2019 X

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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1.Louis has invested $1,000 in the stock market. At the end of one year, there is a 30% chance that his stock will be worth only $800 and a 70% chance that it will be worth $1,200. The expected value of his stock at the end of one year is: A)$1,000. B)$1,080. C)$1,200. D)$1,160. 2.Domingo has a total wealth of $500,000 composed of a house worth $100,000 and $400,000 in cash. He keeps the cash in a safe deposit box, so that it is completely safe. However, there is a 10% chance that his house will burn down by the end of the year and be worth nothing and a 90% chance that nothing will happen to it. Without insurance, the expected value of his end-of-year wealth is: A)$410,000. B)$450,000. C)$490,000. D)$485,000. 3.Micah is considering turning pro before his senior year basketball season. If he turns pro, Micah expects a pro contract worth $2 million in present value. If he does not turn pro, there is a 50% chance an injury will prevent him from playing…
Stock price of General Motors Company is 49.90 on July 17. If you buy 100 shares today and hold them for one year what is your potential capital gain (loss) ? Show calculations. How much dividends will you be recieving for holding the stocks for one year? Show calculations. Assuming that you can value the company using the DDM (Gordon Model) and that your reauired rate of return is 10% how much would you be willing to pay for the stock today? Show calculations. What was the lowest price and the highest price the stock traded in the last year?
Robin Williams is interested in buying stock, in a company that is increasing its dividends at a constant rate of 6.2%. Last year they paid a dividend of $2.65. The required rate of return is 18%. What is the current value of this stock? (round 2 decimal palces)$_____________
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Mike wants to invest in a business in the manufacturing sector. He needs to understand the value of this company's shares as the recent annual dividend was N$2.50 per share(D0=N$2.50) and the required return is 12%. Find the market value of Textile CC shares under the following; 15.1. If dividends are expected to grow at a constant annual rate of 8% to infinity. 15.2 Dividends are expected to grow at an annual rate of 5% for each of the next 4 years, followed by a constant annual growth rate of 6% in years 5 to infinity 15.3 Dividends are expected to grow at an annual rate of 0% to infinity.
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Year beginning of year price Dividend paid 2015 125 2 2016 141 2 2017 120 2 2018 125 2 An investor buys six shares of this stock at the beginning of 2015, buys another beginning of 2016 sells one share at the beginning o 2017 sells all remaining share on 2018What are the arithmetic and geometric average weighted rate of return for the investor? What is the dollar-weighted rate of return?

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