Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Question
Chapter 10, Problem 6P
Summary Introduction
To determine: The return from January 2, 2008 to January 2, 2009 and return from January 3, 2011 to January 3, 2012.
Introduction:
Return is a loss or gain incurred on the investment made by the investors. It is expressed in terms of percentage.
Stock is a type of security in a company which denotes ownership. On issuing stocks, the company can raise capital.
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Using the data from the following table,calculate the return for investing in this stock from January 1 to December 31. Prices are after the dividend has been paid.
Stock Price
Dividend
Jan 1
$50.18
Mar 31
$51.11
$0.58
Jun 30
$49.56
$0.58
Sep 30
$51.93
$0.75
Dec 31
$52.53
$0.75
The return from January 1 to March 31 is
enter your response here.
(Round to five decimal places.)
Part 2
The return from March 31 to June 30 is
enter your response here.
(Round to five decimal places.)
Part 3
The return from June 30 to September 30 is
enter your response here.
(Round to five decimal places.)
Part 4
The return from September 30 to December 31 is
enter your response here.
(Round to five decimal places.)
Part 5
enter your response here%.
(Round to two decimal places.)
Using the data in the following table,
calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid.
The realized return for the entire period is%. (Round to two decimal places.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Stock and Dividend Data
Price
$31.49
$29.52
$30.58
$31.41
$36.79
$43.08
Date
Jan 1
Feb 5
May 14
Aug 13
Nov 12
Dec 31
Dividend
$0.17
$0.22
$0.21
$0.21
-
X
Using the data in the following table, calculate the return for investing in the stock from January 1 to December
31. Prices are after the dividend has been paid
The realized return for the entire period is% (Round to two decimal places.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Stock and Dividend Data
Price
$32,74
$29.75
$29.19
$32.13
$36.55
$40 64
Date
Jan 1
Feb 5
May 14
Aug 13
Nov 12
Dec 31
k
Print
Done
Dividend
$0.21
$0.21
$0.22
$0.18
-
X
Chapter 10 Solutions
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Ch. 10.1 - For an investment horizon from 1926 to 2012, which...Ch. 10.1 - For an investment horizon of just one year, which...Ch. 10.2 - Prob. 1CCCh. 10.2 - Prob. 2CCCh. 10.3 - How do we estimate the average annual return of an...Ch. 10.3 - Prob. 2CCCh. 10.4 - Prob. 1CCCh. 10.4 - Do expected returns of well-diversified large...Ch. 10.4 - Do expected returns for Individual stocks appear...Ch. 10.5 - What is the difference between common risk and...
Ch. 10.5 - Prob. 2CCCh. 10.6 - Explain why the risk premium of diversifiable risk...Ch. 10.6 - Why is the risk premium of a security determined...Ch. 10.7 - What is the market portfolio?Ch. 10.7 - Define the beta of a security.Ch. 10.8 - Prob. 1CCCh. 10.8 - Prob. 2CCCh. 10 - The figure on page informalfigure shows the...Ch. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - The last four years of returns for a stock are as...Ch. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - How does the relationship between the average...Ch. 10 - Consider two local banks. Bank A has 100 loans...Ch. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - Consider an economy with two types of firms, S and...Ch. 10 - Prob. 24PCh. 10 - Explain why the risk premium of a stock does not...Ch. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - What is an efficient portfolio?Ch. 10 - What does the beta of a stock measure?Ch. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - Suppose the risk-free interest rate is 4%. a. i....Ch. 10 - Prob. 35PCh. 10 - Prob. 36PCh. 10 - Suppose the market risk premium is 6.5% and the...Ch. 10 - Prob. 38P
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