Calculating rate of return

Assignment Help Financial Management

Reference no: EM13805677

Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment’s value has decreased to $7,400 by the end of the year.

a. What is the rate of return for this investment?

b. Is the rate of return a positive or negative number?

Reference no: EM13805677

Questions Cloud

Analysis of harley-davidson : Synergy is an often-used word in business, but as the popular press and the textbook suggest, many efforts at diversification do not provide value to customers or shareholders. Based on your analysis of Harley-Davidson to date and its merger, desc..

Calculating earnings per share-price and earnings ratio : Calculating Earnings Per Share, Price-Earnings Ratio, and Book Value. As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax e..

Symbolic interactionist perspective media analysis : Symbolic Interactionist Perspective Media Analysis

Strategic planning in creating value for organization : What is the role of strategic planning in creating value for the organization? Provide an example of how a company uses strategic planning to create value for the organization.

Calculating rate of return : Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment’s value has decreased to $7,400 by the end of the year.

Determining profit or loss from an investment : Determining Profit or Loss from an Investment. Three years ago, you purchased 150 shares of IBM stock for $88 a share. Today, you sold your IBM stock for $103 a share. For this problem, ignore commissions that would be charged to buy and sell your IB..

Write an essay about use fight club : Write an essay about Use Fight Club as your primary source in order to pull quotes (from Fight Club) that you can use to further explore/analyze the previous two projects.

Research on lean project management : Write a research-focused report that investigates and discusses how the principles, theory, processes and tools of Lean Production Delivery Systems (LPDS) can be applied to current project management practices.

Compute the expected share price : Suppose the dividends for the Seger Corporation over the past six years were $1.02, $1.10, $1.19, $1.27, $1.37, and $1.42, respectively. Compute the expected share price at the end of 2014 using the perpetual growth method. Assume the market risk pre..

User Account

All Pages