Question

*Please show how to do the problem in excel with references showing*

You purchased shares of a stock one year ago at a price of $64.79 per share. During the year you received dividend payments of $2.21 and sold the stock for $71.91 per share.

If the inflation rate during that year was 2.95%, what was your real rate of return?

Answer #1

Below are Excel calculations. But just for the sake of it providing the formulas.

Return on share = (Sale Price - Buy Price + Dividend)/Buy Price

This return is nominal return.

Based on Fischer relation,

(1 + Nominal rate) = (1 + Real rate) * (1 + Inflation)

You purchased shares of stock one year ago at a price of $64.46
per share. During the year, you received dividend payments of $2.15
and sold the stock for $71.58 per share. If the inflation rate
during the year was 2.83 percent, what was your real return

8. You purchased shares of stock one year ago at a price of
$63.80 per share. During the year, you received dividend payments
of $2.03 and sold the stock for $70.92 per share. If the inflation
rate during the year was 2.59 percent, what was your real
return?

You purchased shares of stock one year ago at a price of $63.47
per share. During the year, you received dividend payments of $1.97
and sold the stock for $70.59 per share. If the inflation rate
during the year was 2.47 percent, what was your real return?
Multiple Choice
10.35%
11.57%
17.15%
14.36%
8.54%

Please don't solve using excel. Please solve by hand or
type it out.
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The call loan rate is 5%

Please show all calculations and formulas. If using Excel (or
tables), please show data, formulas, etc.
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Calculate the company’s w.a.c.c. using the info
below.
***assume this is a corporate bond that pays 2x annually when
calculating the PV of the bond
Harvey LLC’s capital structure consists of a 25-year bond issued
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please show me how to do this using excel you do not expect
there to be a dividend paid on a share of common stock next year.
after that you expect a $2 dividend that will grow at a constant
rate of 6% there after. how much would you pay for the stock
assuming a cost of equity of 10%

1)
A) At the beginning of last year, you invested $4000 in 80 shares
of the Chang Corp. During the year, chang paid dividends of $5 per
share.
At the end of the year, you sold the 80 shares for $59 a share.
Compute your total HPY on these shares and indicate how much was
due to the price change
and how much was due to the dividend income
ANSWER FOR A:
=[ $5 + (59 - 50)] / 50...

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