Calculate the average return for perfect option stock

Assignment Help Financial Management
Reference no: EM131963635

Below are stock prices and dividends for Perfect Option Football Corporation for 2004-2008:

Price Dividend

2004 $47.02

2005 $52.50 $1.00

2006 $46.00 $0.80

2007 $54.00 $2.35

2008 $57.00 $1.32

Calculate the average return (arithmetic return) for Perfect Option stock over the time period.

Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Reference no: EM131963635

Questions Cloud

Does demand curves slope downward : Does demand curves slope downward? How do wages affect labor supply?
How might you approach research that challenges the position : As an aspiring researcher, you have a responsibility to avoid bias. This means you will read information with an open mind, avoid exaggerated claims.
Does demand curves slope downward : Does demand curves slope downward? How do wages affect labor supply?
Compute the price of the bonds if you know about maturity : The current yield to maturity on such bonds in the market is 7 percent. Compute the price of the bonds if you know that the bond maturity dates 30 years.
Calculate the average return for perfect option stock : Calculate the average return (arithmetic return) for Perfect Option stock over the time period.
What is law of diminishing marginal utility : What is law of diminishing marginal utility? What are its practical applications in the real life?
What would be your monthly car loan payment : What would be your monthly car loan payment under the Ford’s $2,750 cash back offer and your 3.3% APR pre-approved financing
What cultural considerations should you take into account : You think about this and say, "There may well be some considerable cultural differences that need addressing. I remember last year when there was a language.
Make good economic sense : A first conviction may result in a fine of up to $500, even though the social cost of the litter is likely much lower than this amount.

Reviews

Write a Review

Financial Management Questions & Answers

  What must the coupon rate be on the bonds

Essary Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and selling for $966. At this price, the bonds yield 6.8 percent. What must the coupon rate be on the bonds?

  The internal rate of return-opportunity cost of capital

You have the chance to participate in a project that produces the following cash flows: The internal rate of return is 10%. If the opportunity cost of capital is 11%, what is the NPV of the project?

  What is the monthly loan payment

You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? What is the loan’s EF..

  How much will you have at the end of four years

You are a freshman in college and are planning a trip to Europe when you graduate from college at the end of four years. You plan to save the following amounts annually, starting today: $550, $710, $740, and $850. If you can earn 7.50 percent annuall..

  What is the expected return on the market and risk-free rate

You have been given the following information on two corporations; you are to assume that the securities are correctly priced. My Corp, Inc. has a Beta of 1.35 and an Expected Return of .075; Your Corp, Inc. has a Beta of .65 and an Expected Return o..

  What proportion of the risk for security is systematic risk

What proportion of the risk for security i is systematic risk?

  How large would the annual cash flows

A few years ago a subsidiary of Stanley Works offered to purchase another company for $54.3 million in order to diversify its business. One way to value an entire company is to find the present value of the annual cash flows generated by the company...

  Assets must grow at the same rate as projected sales

Broussard Skateboard's sales are expected to increase by 25% from $7.6 million in 2015 to $9.50 million in 2016. Its assets totaled $4 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

  Flotation costs for new issuances of preferred stock

A firm's preferred stock pays an annual dividend of $8, and the stock sells for $72. Flotation costs for new issuances of preferred stock are 3% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 38%?

  Unit in variable costs and unit in fixed costs

A company has $6.70 per unit in variable costs and $3.40 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.58, what price should be charged if 67,000 units are expected to be sold?

  Low risk investments comparable to the retirement annuity

You currently earn 8% on low risk investments comparable to the retirement annuity. what is the most you would pay for this annuity?

  What is the present value of this liability

Imprudential, Inc., has an unfunded pension liability of $759 million that must be paid in 10 years. what is the present value of this liability?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd