(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas. Asman $9 Time 1 2 11 3 12 4 14 (Click on the icon in order to copy its contents into a spreadsheet.) How would you interpret the meaning of the annual rates of return? Salinas $30 27 32 36 C••• The rate of return you would have earned on Asman stock from time 1 to time 2 is%. (Round to two decimal places.)
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- use the end of your stock price data in the pop-up window to answer the following, questions from the Harris and pinwheel companies compute the annual rates return for each time, for both firms value of harris stock 10 8 14 15 value of pinwheel stock 17 34 31 24Find the real rate of return for the Costco stock you purchased for $166.80 five years ago, that has a current price of $382.23, and dividends of $7/per share. The inflation rate is 9.44%. (round to TWO decimal places){WRITE YOUR ANSWER AS A PERCENTAGE…FOR EXAMPLE, WRITE 12.56 FOR 12.56% AND NOT .12563}.A company expects EPS to be $2.52 next year. The industry average P/E ratio is 23.99 and Enterprise multiple is 7.57. The EBITDA for the company is $22.97 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.
- TJMaxx (TJX) stock is currently selling for $796.96. You are thinking about buying it and you hope to sell it for $1141.71 in 4 years. What is the implied return? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate.Note: Please answer this question only by typing your answers in the typing space available for this question Assume that the annual rates of return for two stocks (Reliance and Wipro) for the past 5 years are as given below: Year 2 3 4 5 Reliance 35% 11% -7% -12% 24% Wipro 28% 7% -11% 15% -5% Based on the above information answer the following questions: (a) Compute the arithmetic mean of the annual rate of return for each stock. Which stock is preferable by this measure? (b) Compute the geometric mean of the annual rate of return for each stock. Which stock is preferable by this measure? (c) Compute the standard deviation of the annual rate of return for each stock. Which stock is preferable by this measure?Using the stock table for Dell Technologies below, calculate the earnings per share. Round your answer to the nearest cent.Do not include the $ in your answer.Dell TechnologiesDVMT$66.26$66.40-$66.96$42.02-568.25NameSymbolCloseDay Range52-Week RangeVolumeP/EDividendDividend YieldEPS895,028103.53$0.000%?
- → W 5 (Related to Checkpoint 7.2) (Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends: Marsh $11 10 20 9 11 (Click on the icon in order to copy its contents into a spreadsheet.) d Time 1 2 3 4 ew an example 5 F2 a. Calculate the annual rate of return for each year from the above information. b. What is the arithmetic average rate of retum earned by investing in Marsh's stock over this period? In a. The annual rate of return at the end of year 2 is -9.09 %. (Round to two decimal places.) The annual rate of return at the end of year 3 The annual rate of return at the end of year 4 is The annual rate of retum at the end of year 5 is b. The arithmetic average rate of return earned by investing in Marsh's stock over this period is%. (Round to two decimal places.) is 100 %. (Round to two decimal places.) -55 %. (Round to two decimal places.) 22.22 %. (Round to two decimal…A company has an EPS of $3.30, a book value per share of $32.34, and a market/book ratio of 3.1x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Do not round intermediate calculations. Round your answers to two decimal places.(Solving a comprehensive problem) Use the end-of-year stock price data in the popup window,, to answer the following questions for the Harris and Pinwheel companies. a. Compute the annual rates of return for each time period and for both firms. b. Calculate both the arithmetic and the geometric mean rates of return for the entire three-year period using your annual rates of return from part a. (Note: you may assume that neither firm pays any dividends.) c. Compute a three-year rate of return spanning the entire period (i.e., using the ending price for period 1 and ending price for period 4). d. Since the rate of return calculated in part c is a three-year rate of return, convert it to an annual rate of return by using the following equation: 1 + Three-Year Rate of Return 1 + Annual Rate of Return 3 e. How is the annual rate of return calculated in part d related to the geometric rate of return? When you are evaluating the performance of an investment that has been held for several…
- The following information was available for the year ended December 31, 2022: Dividends per share Earnings per share 1.35 3.00 28.20 Market price per share at year-end Required: a. Calculate the price/earnings ratio for 2022. Note: Round your answer to 2 decimal places. b. Calculate the dividend payout ratio for 2022. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). c. Calculate the dividend yield for 2022. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). a. Price/Earning ratio b. Dividend payout ratio c. Dividend yield % Ji di %The common stock of XMen Inc. had the following historic prices. Time 3/01/1999 3/01/2000 3/01/2001 3/01/2002 3/01/2003 3/01/2004 Price of X-Tech 50.00 47.00 76.00 80.00 85.00 90.00 A. What was your holding period return for the time period 3/1/1999 to 3/1/2004? B. What was your annual holding period yield (Annual HPY)? C. What was your arithmetic mean annual yield for the investment in XMen Industries. D. What was your geometric mean annual yield for the investment in XMen?Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price = $27; first-year dividend = $4; price after one year = $32; second-year dividend = $4; selling price after two years = $25. (Round Intermediate calculations to 3 decimal places, e.g. 15.251% and the final answers to 2 decimal places, e.g. 15.25%.) Arithmetic average return Geometric mean return State which method is more appropriate for the situation. Arithmetic average Geometric mean % %