2017-2018 16.92% 2018-2019 19.54% 2019-2020 0.36% 2020 2021 28.93% 2021-2022 -5.17% You have also collected the level of the CPI over the same period: Date March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 March 2022 Level 958 972 975 979 1000 1011 1026 1052 1068 1142 (a) For each tax year, calculate the inflation rate. (b) Now calculate a real rate of return for the NZX50 (use the full for- mula, not the approximation) for each year. (c) What is the mean nominal return for the NZX50? What is the mean real return? (d) What is the nominal volatility for the NZX50? What is the real volatility of the NZX50? (e) Suppose New Zealand had a 33% tax levied on capital gains and all dividends. Repeat your analysis, calculating after-tax mean real and nominal returns, along with real and nominal after-tax volatilities.

2017-2018 16.92% 2018-2019 19.54% 2019-2020 0.36% 2020 2021 28.93% 2021-2022 -5.17% You have also collected the level of the CPI over the same period: Date March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 March 2022 Level 958 972 975 979 1000 1011 1026 1052 1068 1142 (a) For each tax year, calculate the inflation rate. (b) Now calculate a real rate of return for the NZX50 (use the full for- mula, not the approximation) for each year. (c) What is the mean nominal return for the NZX50? What is the mean real return? (d) What is the nominal volatility for the NZX50? What is the real volatility of the NZX50? (e) Suppose New Zealand had a 33% tax levied on capital gains and all dividends. Repeat your analysis, calculating after-tax mean real and nominal returns, along with real and nominal after-tax volatilities.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The sales and profit for two years are as below: Sales Profit 2019 60000 17000 2020 90000 32000 Calculate Sales required to earn a profit of OMR 25000
Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.
CALCULATE THE INTEREST COVERAGE RATIO. For the year ended December 31, Notes 2020 2019 Revenue ₱ 10,775,731.00 ₱ 11,334,976.00 Cost of Sales 7,175,540.00 7,552,700.00 Gross profit 3,600,191.00 3,782,276.00 General and Administrative expenses 3,278,202.00 3,417,740.00 Finance Cost Or Interest Expense 48,000.00 16,000.00 Net Income before Tax 273,989.00 348,536.00 Provision for Income Tax 82,197.00 104,561.00 NET INCOME AFTER TAX ₱ 191,792.00 ₱ 243,975.00 (See Notes to Financial Statement)
Q2. (8 points) Five annual returns are listed in the following table: Year 1 2 -20% 3 4 5 17% 18% -30% If you invested $100 at the beginning, how much would you have at the end? 40%
B (1) Calculate monthly returns of ABBV from APRIL 5, 2019, TO APRIL 5,2024 Current price of ABBV is $170. Use the bootstrapping approach (that estimates a return on ABBV during each of the next 12 months by assuming that the return during each month is equally likely to be any of the returns for the latest 60 months (from APRIL 5, 2019, TO APRIL 5, 2024) to estimate ABBV ending Price in one year.
What is the Effective Annual Return (EAR) if the Annual Percentage Rate (APR) is 15% compounded monthly? Select one: a.16.08% b.15.7% c.15% d.16.55%
Attempt History Current Attempt in Progress Wildhorse Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment: Cost Old Equipment Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs $80,240 $40,300 8 years $9,920 $0 $35,100 Cost New Equipment Estimated useful life Salvage value in 8 years Annual cash operating costs $38,000 8 years $4,800 $29,900 Depreciation is $10,030 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,800.
Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negative
A customer is offered an investment where interest is calculated according to the force of interest,t {0.02t 0 ≤ t ≤ 3, 0.045 t > 3If the customer invest GH¢1000 now, what rate of interest, compounded quarterly is earned over the first 4 year period.
You are reviewing an investment with the following price history as of December 31steach year.Calculatea. The HPRfor the entire periodb. The annualHPRsc. TheEquivalent Annual Return (EAR) 2016 2017 2018 2019 2020 OMR 1.45 OMR 1.78 OMR 1.26 OMR 1.71 OMR 1.91
What is the FV at the end of year 5 of $2212 put in an account today if the return is 8.6% per year?
Compute for the corrected profit for the following year: 2019 A.550,000 B.450,000 c.360,000 D.500,000

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