Question
1. BierCo is a beer company based in Germany. You purchased the stock five (5) years ago for 127.37 Euros when the exchange rate was
1. BierCo is a beer company based in Germany. You purchased the stock five (5) years ago for 127.37 Euros when the exchange rate was 1.11 USD/EUR. Today BierCos price is 132.65 Euros and the exchange rate is 1.59 USD/EUR. What is the dollar-denominated average annual return?
Express your answer in decimal format, e.g., enter 0.0123 to represent 1.23%.
[Hint: You could use map this problem into the fab 5.]
2. What was Acme Inc.'s internal growth rate (IGR) given the following return on equity (ROE), return on assets (ROA), and dividend payout ratio (DPR) information:
Item | Value |
ROE | 49.67 % |
ROA | 15.06 % |
DPR | 29.97 % |
3. Given the following 5 years of data, compute the geometric mean:
t | 1 | 2 | 3 | 4 | 5 |
TR | 14.45 % | -0.83 % | 19.74 % | 7.86 % | 13.78 % |
Express your answer in decimal notation, e.g., enter 0.0123 to represent 1.23%.
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