What is the geometric return for this stock

Assignment Help Financial Management
Reference no: EM13928201

A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent over the last six years, respectively. What is the geometric return for this stock?

Reference no: EM13928201

Questions Cloud

Federal income tax bracket : You are in the 28 percent federal income tax bracket. A corporate bond offers you a 6.8 percent while a tax-exempt bond with the same credit rating and term to maturity offers 4.1 percent. On the basis of taxation, which bond should be preferred? Exp..
Long-term if you are unwilling to bear risk : Based on the period 1926-2011, what rate of return should you expect to earn over the long-term if you are unwilling to bear risk?
Objective of financial reporting : 1. Which of the following is NOT normally an objective of financial reporting?
Forecast of demand-find the break-even quantity : A producer of felt-tip pens has received a forecast of demand of 34,000 pens for the coming month from its marketing department. Fixed costs of $30,000 per month are allocated to the felt-tip operation, and variable costs are 36 cents per pen. Find t..
What is the geometric return for this stock : A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent over the last six years, respectively. What is the geometric return for this stock?
What is the relationship between npv and the discount rate : What is the market line? Why should a firm reject a projects lying below the market line and accept those lying above the line. What is the relationship between NPV and the discount rate?
Planning to undertake a project with internal rate of return : Your company’s WACC is 11%. It is planning to undertake a project with an internal rate of return of 14%, but you believe this project is not a wise investment. What logical arguments would you use to convince your boss to forego the project despite ..
About the efficient market hypothesis : For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak form efficient,  The stock price has risen steadily each day for the past 30 da..
What rate of return should jacobs require on a project : What rate of return should Jacobs require on a project of average risk? If a new venture is expected to have a beta of 1.6, what rate of return should Jacobs demand on this project?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value of your winnings

You just won the lottery, which promises you $260,000.00 per year for the next 20 years, starting today. That is, this is an annuity due. If your discount rate is 7.00%, what is the "present value" of your winnings?

  Share of preferred stock pays a constant dividend

Assume a share of preferred stock pays a constant dividend of $1.15. If the required return is 5%, what is the expected price of this preferred stock?

  Shareholders are required to compensated for financial risk

Company has an Un levered beta of 1.1. Financed with 50% debt and levered beta of 1.6. If the risk free rate is 5.5% and the market risk premium is 5% how much is the additional premium that shareholders are required to be compensated for financial r..

  A decrease in the sales of a current project

A decrease in the sales of a current project because of the launching of a new project is

  Undertakes no new investment opportunities

BioTech expects to earn $2 million per year in perpetuity if it undertakes no new investment opportunities. There are 100,000 shares outstanding. The firm will have an opportunity at Year 1 to spend $2 million on a new project. The new project will i..

  Amount of the certificate as function of index performance

A bank offers a $100 certificate which redeems a variable amount after 5 years calculated as follows: $108and: $+1.08 for every percent that XYZ index went up, or: -$1.08 for every percent that XYZ index went down. draw the redemption amount of the c..

  What is the future value of an annuity

What is the future value of an annuity of 17 deposits of $2300 each year with nominal rate of interest being 10% compounded continuously? HKL Co. plans a new project that will generate $ 170,000 of continuous cash flow each year for 6 years and addit..

  What are effects on the after-tax profits and cash flow

A project currently generates sales of $11.5 million, variable costs equal to 40% of sales, and fixed costs of $3.5 million. The firm’s tax rate is 35%. What are the effects on the after-tax profits and cash flow, if sales increase from $11.5 million..

  Cost straight-line to zero over the projects life

Romo Enterprises needs someone to supply it with 121,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $880,000 to install the equipment nec..

  Same cost of equity and after tax cost of debt

Two companies have the same cost of equity and after tax cost of debt. What needs to be true regarding the cost of debt as compared to cost of equity for the WACC of the higher leverage firm to be higher than that of lower leverage firm? And why?

  Suppose interest rates have been at historically high levels

Suppose interest rates have been at historically high levels the past two years and you therefore expect they will soon go down. A reasonable strategy for bond investors during this time period would be to:

  What is the last dividend paid

Motors Co stock has a required rate of return of 11.50% and it sells for 25$. Dividend is expected to grow at constant rate of 7%. What is the last dividend paid?

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