What are annual rate of return and future value

Assignment Help Financial Management
Reference no: EM131543373

1. Yield on investment

Mr. Dow bought 100 shares of stock at $18 per share. Three years later, he sold the stock for $24 per share.

What is his annual rate of return? Use Appendix B for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Annual rate of return %

2. Future value

You invest a single amount of $16,850 for 7 years at 15 percent. At the end of 7 years you take the proceeds and invest them for 14 years at 17 percent.

How much will you have after 21 years? Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Future Value

Reference no: EM131543373

Questions Cloud

Present three estimates of the dividend growth rate : Present three estimates of the dividend growthr ate and the corresponding estimates of the dividend in year 6.
Show the inflation adjusted cash flow : Prepare a table to show the inflation adjusted cash flow. Ignore the issues related to income tax.
Prepare table to show the inflation adjusted cash flow : Prepare a table to show the inflation adjusted cash flow. Include (he income tax in this table. Assume that you are already in the 28% income tax bracket.
Stock futures contract on nondividend-paying stock : A single stock futures contract on a nondividend-paying stock with current price $185 has a maturity of one year. a. If the T-bill rate is 5.0%, what should the
What are annual rate of return and future value : What is his annual rate of return? Future value-You invest a single amount of $16,850 for 7 years at 15 percent.
Equation with the appropriate weighting factors : ALSO you are not called upon to calculate an E(r) but to set up the equation with the appropriate weighting factors only.
Company beta coefficient-investors required rate of return : How would these recommendations affect the company's beta coefficient and the investors' required rate of return?
Calculation of BetterPies WACC : What would be the weights used in the calculation of BetterPie’s WACC?
Preferred stock in the computation of OMGs WACC : What weight should you use for preferred stock in the computation of OMG’s WACC?

Reviews

Write a Review

Financial Management Questions & Answers

  Define the general contracts and general scope of work

Define the following terms: General Contracts · General scope of work · Contract Intent · Contract Indication · Reasonable review · Patent errors · Change clause(order) · Pass-through clause Contract Bonds and Insurance · Bid Bond · Performance Bond ..

  Used initial cash flow for building project

Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $650,000. The lot was recently appraised at $695,000. At the time of the purchase, the company spent $31,000 to grade the lot and another $3,500 to build a small buildi..

  Dynamic and defensive open market operations

What is the difference between dynamic open market operations and defensive open market operations? What are the differences in the ways these two types of open market operations are carried out?

  What is the company unlevered cost of equity capital

What is the company’s cost of equity capital? What is the company’s unlevered cost of equity capital?

  Firm been decreased by the expected bankruptcy costs

Custer's has bonds outstanding with a face value of $162,000 that are selling at par. It also has 10,000 shares of stock outstanding that are selling for $32.30 a share. The all-equity value of the firm is $455,000. The tax rate is 35 percent. By wha..

  What is present value of perpetual stream of cash flow

What is the present value of a perpetual stream of cash flows that pays $7,000 at the end of year one and the annual cash flows grow rate at a rate of 4% per year indefinitely, if the appropriate discount rate is 11%? What if the appropriate discount..

  What is your expected rate of return for sumter stock

You can purchase one share of Sumter Company common stock for $80 today. You expect the price of the common stock to increase to $85 per share in one year. The company pays an annual dividend of $3.00 per share. What is your expected rate of return f..

  About a market decline and wish to hedge the portfolio

You are managing a pension fund with a value of $320 million and a beta of 1.70. You are concerned about a market decline and wish to hedge the portfolio.

  What would have been her return in yen

Benjamin Pinkerton from New York invested in a U.S. two-year zero-coupon bond at the start of the period and sold it after one year. What was his return?

  What is the firm operating cash flow

The Firm, Inc. has an after- tax cost of capital of 12%, and its tax rate is 40%. Last year the firm had $3,400,000 of earnings before interest and taxes on its $12,000,000 of sales, while depreciation expense was $800,000, and interest expense $200,..

  What is the companys average balance in accounts payable

ABC Company has a cash cycle of 11.15 days, an operating cycle of 23.99 days, and an average collection period of 5 days. The company reported cost of goods sold of $233,840. What is the company's average balance in Accounts Payable?

  What is the present value of a zero-coupon bond

What is the present value of a zero-coupon bond with five years maturity, a nominal value of $1,000 and a discount rate of 6%?

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