How much would that investment be worth today

Assignment Help Financial Management

Reference no: EM131357350

Investments in the stock market have increased at an average compound rate of about 5% since 1912. It is now 2013.

a. If you invested $1,000 in the stock market in 1912, how much would that investment be worth today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Investment $_____

b. If your investment in 1912 has grown to $1 million, how much did you invest in 1912? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value $______

Reference no: EM131357350

Questions Cloud

Which investment strategy should smart banking : Smart Banking Corp. can borrow $5 million at six percent annualized, and it can use the proceeds to invest in Canadian dollars at nine percent annualized over a six-day period. Based on this information, which investment strategy should Smart Banking..

Does gallo face currency risk : Gallo is a large wine producer in the US. It gets all its grapes in California and sells its wines only in the US. Does Gallo face currency translation exposure? Explain. Does Gallo face currency risk? why and how?

Bond outstanding with an annual interest payment : Preston Corporation has a bond outstanding with an annual interest payment of $100, a market price of $1,270, and a maturity date in 6 years. Assume the par value of the bond is $1,000. I need to find the approximate yield to maturity and exact yield..

How much would that investment be worth today : Investments in the stock market have increased at an average compound rate of about 5% since 1912. It is now 2013. If you invested $1,000 in the stock market in 1912, how much would that investment be worth today?

Bankers prefer short-term bank credit : Bankers prefer short-term bank credit because it is an excellent way of financing

Market share in its foreign markets : In the face of an appreciating home currency, a MNC can focus on profit margins or market share in its foreign markets. Explain how the price elasticity of demand for its product and economies of scale should influence their focus.

What is the change in the real exchange rate : The japanese yen devalues by 2% this year. If the Japanese and U.S inflation rates were 6% and 2%, respectively, what is the change in the real exchange rate?

What is the after-tax cost of preferred stock : A firm is paying an annual dividend of $9.00 for its preferred stock which is selling for $65.00. There is a selling cost of $2.00. What is the after-tax cost of preferred stock if the firm's tax rate is 36%?

User Account

All Pages