What is your approximate real rate of return

Assignment Help Financial Management
Reference no: EM13977596

1. Last year, you purchased a stock at a price of $53 a share. Over the course of the year, you received $1.6 in dividends and inflation averaged 2.6 percent. Today, you sold your shares for $55.1 a share. What is your approximate real rate of return on this investment? 

Reference no: EM13977596

Questions Cloud

What is their final velocity : A 10 kg cart is moving at a velocity of 5m/s hits a tricycle of mass 20kg moving at a velocity of 2m/s. If these objects get stuck to each other when they collide, what is their final velocity? What is this type of collision known as? Please show ..
What is the greatest height above the ground that rockgo : A rock is thrown upward from the edge of a cliff. The rock follows the equation below. s = [b] x [d] + 64t - 16t2 What is the greatest height above the ground that this rock will go
Stock in foreign companies : There are 100 members in the U.S. Senate. A political scientist wants to estimate, with 95% confidence and within 3 percentage points, the percentage who own stock in foreign companies.
What magnitude rotational speed : A 10-kg disk-shaped flywheel of radius 9.0 cm rotates with a rotational speed of320 rad/s. Determine the rotational momentum of the flywheel.
What is your approximate real rate of return : What is your approximate real rate of return on this investment?
What are the limitations of the constant growth model : Monica Dubois, an ABC investment advisor, has a new client, Mr. Jack Klein. Mr. Klein is a conservative investor who is interested in a required rate of return of 10% on his stock investments while assuming lower market risk. You are asked to help..
Problem regarding the average lead concentration : Based on your results, comment on the possibility that the average lead concentration in this community's homes might exceed the Environmental Protection Agency's recommended limit of 15 parts per billion of lead.
How much electrical potential energy is stored in triangle : How much Electrical Potential Energy is stored in the equilateral triangle? (The answer is -405 Joules, but I can't figure out how to get that).
Determine the rotational momentum of the flywheel : A 10-kg disk-shaped flywheel of radius 9.0 cmrotates with a rotational speed of 320 rad/s. Determine the rotational momentum of the flywheel.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the invoice price of the bond

A bond with a coupon rate of 6% makes semi annual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the ask price for the bond on January 30 at 100:05. What is the invoice price of the bond? The coupon period has..

  Using a money-market fund and a checking account

Martin Company uses Miller-Orr model to manage its cash, using a money-market fund and a checking account. Martin keeps a minimum balance of $5000 in the checking account. The checking account pays no interest, but the money market pays 5% interest p..

  The key ethical issues and the stakeholders

Imagine that you are an IT consultant who has been given the task of preparing a report for the management board of a software house that is currently thinking of implementing electronic monitoring throughout its operations.

  Should turnberry buy or lease these vans

Turnberry Trucking Service would like to acquire 400 vans for its business. It can buy each van for $35,000, depreciate it completely over 7 years, and then sell it for $10,000. The tax rate of Turnberry is 35%, and its cost of debt is 12%. Should Tu..

  Compute the expected balance in accounts receivable

Prepare a schedule of cash collections for May through July and compute the expected balance in Accounts Receivable as of July 31.

  Tackle the problem of nitrates in the water

Suppose El Centro California decides to tackle the problem of nitrates in the water. Nitrates are compounds derived from synthetic fertilizers that are not assimilated by plants and leached out into the underground water and affect the human health. ..

  What is the real risk-free rate of return

Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.80% per year. What is the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithme..

  The bonds make semiannual payments and have par value

Sqeekers Co. issued 10-year bonds a year ago at a coupon rate of 8.8 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 7.1 percent, what is the current bond price?

  Firm to value their capital budgeting projects

The flow-to-equity approach has been used by the firm to value their capital budgeting projects. The total investment cost at time 0 is $640,000. The company uses the flow-to-equity approach because they maintain a target debt to value ratio over pro..

  General funds are blocked by the argentine government

General Eletric's funds are blocked by the Argentine government. GE still wants to continue its operations in the country. Under the circumstance, GE should

  Compute the fair value of two nearest to expiration futures

Compute the ‘fair’ value of the two nearest to expiration futures contracts on the S&P500 Index (SPX) using SPX as the underlying asset. Did the futures contract settle above or below SPX?

  Drawbacks of accumulating cash balances

What are the benefits and drawbacks of accumulating cash balances rather than paying dividends and what effects does dividend policy have on this type of decision?

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