The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these data, estimate the average monthly return and the volatility for each stock. (Click on the following icon in order to copy its contents into a spreadsheet.) Month January February March April May June July August September October November The average monthly return for Cola Co. is%. (Round to two decimal places.) Cola Co. -7.10% -2.10% -3.80% -4.10% 1.50% 1,20% -21.10% - 14.50% -28.80% 22.90% -13.40% Gas Co. -8.10% -2.00% -2.60% -5.00% -4.70% -3.20% 6.70% -8.50% - 12.60% 16.50% -6.10%

The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these data, estimate the average monthly return and the volatility for each stock. (Click on the following icon in order to copy its contents into a spreadsheet.) Month January February March April May June July August September October November The average monthly return for Cola Co. is%. (Round to two decimal places.) Cola Co. -7.10% -2.10% -3.80% -4.10% 1.50% 1,20% -21.10% - 14.50% -28.80% 22.90% -13.40% Gas Co. -8.10% -2.00% -2.60% -5.00% -4.70% -3.20% 6.70% -8.50% - 12.60% 16.50% -6.10%

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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Similar questions

On March 9, 2009, the Dow Jones Industrial Average reached a new low at a close of 6,847.20, which was down 86.04 that day.What was the return (in percent) of the stock market that day? (Negative answer should be indicated by a minus sign. Round your answer to 2 decimal places.) Return of Stock Market : _____.__%
The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these data, estimate the average monthly return and the volatility for each stock. (Click on the following icon in order to copy its contents into a spreadsheet.) Month January February March April May June July August September October November December The average monthly return for Cola Co. is%. (Round to two decimal places.) Cola Co. - 6.80% 7.40% -2.10% 4.30% 11.30% 1.40% 4.10% - 0.60% 0.80% 1.90% 0.70% - 2.90% Gas Co. - 3.00% - 7.70% 0.20% 3.10% - 1.00% 0.00% 4.80% - 3.80% - 5.80% 1.20% - 2.30% 4.70%
A company's stock price rose 2.8% in 2011, and in 2012, it increased 79.7%.a. Compute the geometric mean rate of return for the two-year period 2011-2012. (Hint: Denote an increase of 79.7% by .797.)b. If someone purchased $1,000 of the company's stock at the start of 2011, what was its value at the end of 2012?c. Over the same period, another company had a geometric mean rate of return of 10.7%. If someone purchased $1,000 of the other company's stock, how would its value compare to the value found in part (b)?
Arrington stock is currently valued at $28.40 per share. The firm had eamings per share of $1.86 last year and projects earnings of $2.09 per share for next year. What is the trailing twelve month price-earnings ratio?
The Bouchard Company's EPS was $6.80 in 2021, up from $3.34 in 2016. The company pays out 50% of its earnings as dividends, and its common stock sells for $35.00. a. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places. % b. The last dividend was Do = 0.50($6.80) = $3.40. Calculate the next expected dividend, D₁, assuming that the past growth rate continues. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. %
The newspaper reported last week that Bennington Enterprises earned $34.09 million this year. The report also stated that the firm's return on equity is 18 percent. The firm retains 70 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What will next year's earnings be? (Do not round intermediate calculations and enter your answer in dollars, 'not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Earnings growth rate Next year's earnings %
Suppose that a firm's recent earnings per share and dividend per share are $2.55 and $1.40, respectively. Both are expected to grow at 11 percent. However, the firm's current P/E ratio of 15 seems high for this growth rate. The P/E ratio is expected to fall to 11 within five years. Compute the dividends over the next five years. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Years First year Second year Third year Fourth year Fifth year Dividends
Crane Jewelers management announced that the company had net earnings of $4,356,000 for this year. The company has 1,613,000 shares outstanding, and the year-end stock price is $68.91. What are Crane’s earnings per share and P/E ratio? (Round answers to 2 decimal places, e.g. 12.25)
he table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Do not round intermediate calculations. Round your answers to 2 decimal places.) IBM AMZN January $ 173.24 $ 609.06 February 175.69 619.88 March 187.69 578.30 April 203.79 546.50 May 193.81 516.54 June 207.25 499.18 July 230.50 605.49 August 207.85 538.26 September 219.11 513.48 October 214.23 598.70 November 194.99 594.17 December 174.78 652.50
If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company: Year 1 Year 2 Year 3 Year 4 High $87.93 $100.35 $121.89 $133.60 Low price 69.85 83.19 79.99 110.18 EPS 6.54 8.96 8.62 10.21 Earnings are expected to grow at 5.5 percent over the next year. a. What is the high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. High target price b. Low target price price
You have collected the following information regarding Impi industrula Corporation's historical earnings per share. 2012 =R12.36 2013= R13.60 2014 =R15.82 2015= R17.80 2016= R20.90 2017 = R21.78 Based on your analysis of Impu's fundamentals you estimate that the firm's earnings will continue to grow at its average historical growth rate for the next year but that in the following year, as a result of the launch of a new product the form is currently developing, earnings will grow at a rate of 20% per year for two years. After this, you project that the earnings growth rate will decrease by 5% per year for the next two years, to its long term sustainable rate. You project that the firm will maintain a 50% dividend pay-out ratio and that the appropriate market capitalization rate for Impi Industrial Corporation is 15%. What action would yoh take if the firm's shares are currently trading at R620 per share?
The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Do not round intermediate calculations. Round your answers to 2 decimal places.) January February Marchi April May June July August September October November December IBM $172.04 174.89 185.17 201.13 194.77 206.33 227.84 210.31 AMZN $606.16 617.72 581.12 545.70 520.70 501.58 604.89 539.16 514.00 596.68 194.09 595.91 174.22 650.30 218.15 213.99

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