Fin 8

This extra GHA, as was indicated is optional to be done by all, in particulart to the many of you who missed a GHA due to some reason usually no fault of your own. The problems are drawn from chapter 10 of your course resource. The  questions (two short ones) would be seen upon opening and is similar to the GHA from chapter 10 previously allocated and discussed in the discussion board. See below

A  review of  Chapter 10 would help with these problems as indicated above.

1.  You bought a stock for $28.29 that paid the following



Year 1 2 3
      Dividend $1.00 $1.50 $1.80

After the third year, you sold the stock for $35. What was the annualized rate of return?

Hint use Financials in Excel:   =IRR(A6:A9)  or your Financial Calculator

ANS:  ————————————————————————————————————————————————————-


2.  a. Given the following information concerning three stocks, construct a simple average, a value-weighted average, and a geometric average.


       Stock Price Shares Outstanding
         A $10 1,000,000
         B $14 3,000,000
         C $21 10,000,000

b.  What are averages if each price rises to $11, $17, and $35, respectively?


c.  What is the percentage increase in each average?











b. —————————————————-

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