Question

In: Finance

Five years ago, Miguel invested a stock with price $35 per share. The stock price at...

Five years ago, Miguel invested a stock with price $35 per share. The stock price at the end of every year is as the following. Assumes no dividends paid during these years. Year Price 0 35 1 37 2 36 3 40 4 42 5 45 a) What was Migule’s holding period return on this stock for last five years? b) What was Migule’s annual internal rate of return? c) What was the standard deviation of returns of Migule’s investment?

Solutions

Expert Solution


Related Solutions

Twenty years ago, you invested $10,000 in AAPL at $5.00 per share (split adjusted). Today the...
Twenty years ago, you invested $10,000 in AAPL at $5.00 per share (split adjusted). Today the stock is trading for $110 per share.  You are now 50 and preparing to retire in ten years at age 60. Assume you need $7,000 per month starting the first month of retirement; you estimate that the $7,000 needs to increase by 3% annually until your life expectancy at age 90.  The annuity will earn an annual rate of 6.0%; use as the discount rate from...
Amanda purchased stock in a German firm at a price per share of 35 euros when...
Amanda purchased stock in a German firm at a price per share of 35 euros when the US $/euro exchange rate was $1.40. After six months, Ann sold the stock for 37 euros when the US $/euro exchange rate was $1.45. The stock does not pay a dividend. What is Ann's rate of return on this investment? 9.5% 5.7 -9.5 -5.7
Assume you purchased the stock of Del Mar Spa at $35 per share one year ago,...
Assume you purchased the stock of Del Mar Spa at $35 per share one year ago, its current price is $42. Sitting on an enviable huge cash coffer, Del Mar Spa is considering three alternatives of paying dividend to its shareholders. Choices #1 and #2 are to pay a dividend of $2 and $3 respectively. Choice #3 is paying nothing. Further assume that the price drop on ex date will be equal to the dividend per share. Your income tax...
One year ago, you purchased a stock at a price of $57.16 per share. Today, you...
One year ago, you purchased a stock at a price of $57.16 per share. Today, you sold 4) your stock at a loss of 18.11 percent. Your capital loss was $12.21 per share. What was the dividend yield on this stock?
Over a five-year period, the quarterly change in the price per share of common stock for...
Over a five-year period, the quarterly change in the price per share of common stock for a major oil company ranged from -8% to 12%. A financial analyst wants to learn what can be expected for price appreciation of this stock over the next two years. Using the fiveyear history as a basis, the analyst is willing to assume that the change in price for each quarter is uniformly distributed between -8% and 12%. Use simulation to provide information about...
Over a five-year period, the quarterly change in the price per share of common stock for...
Over a five-year period, the quarterly change in the price per share of common stock for a major oil company ranged from -7% to 14%. A financial analyst wants to learn what can be expected for price appreciation of this stock over the next two years. Using the five-year history as a basis, the analyst is willing to assume that the change in price for each quarter is uniformly distributed between -7% and 14%. Use simulation to provide information about...
Over a five-year period, the quarterly change in the price per share of common stock for...
Over a five-year period, the quarterly change in the price per share of common stock for a major oil company ranged from -6% to 10%. A financial analyst wants to learn what can be expected for price appreciation of this stock over the next two years. Using the five-year history as a basis, the analyst is willing to assume that the change in price for each quarter is uniformly distributed between -6% and 10%. Use simulation to provide information about...
ANZ share price is $35. They are expected to pay a dividend of $2 per share...
ANZ share price is $35. They are expected to pay a dividend of $2 per share in 7 months’ time. The riskfree rate of interest is 6% per annum. Calculate the fair forward price for the delivery of ANZ share in exactly 2 month.
1. 17 years ago, I purchased 124 shares of a stock worth $12.67 per share. There...
1. 17 years ago, I purchased 124 shares of a stock worth $12.67 per share. There was a 3:1 split, a 3:1 split, and a 5:1 split during that time period. Today the stock is worth $3.5 per share. If the dividend yield was on average 12% during the last 17 years, what was the total rate of return? Round your answer to the nearest whole number. 2. Suppose a corporation sells stock at $15 per share. Compute the dividend...
Five years ago a chemical plant invested $66,000 in a pumping station on a nearby river...
Five years ago a chemical plant invested $66,000 in a pumping station on a nearby river to provide the water required for their production process. Straight-line depreciation is employed for tax purposes, using a 30-year life and zero salvage value. During the past five years, annual operating costs have been as follows:                                     Maintenance                $1,200                                     Power and Labor         $3,500                                     Taxes and insurance    $200 A nearby city has offered to purchase the pumping station for $55,000 as it is in the process of developing...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT