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6) (4 pts) Five years ago you invested $8000 into a stock ac another $6000. Three years ago, you invested any more money. One year
6) (4 pts) Five years ago you invested $8000 into a stock ac another $6000. Three years ago, you invested any more money. One year ago, you didn't worth $34,000. What is the dollar weighted a account over the last 5 years? unt. Four years ago, you invested So, you invested another $5000. Two years ago, you didn't invest you didn't invest any more money. Today, the stock account is eighted average return of your total investment in the stock WAA Dollar weighted average return = 7) (4 pts) Given the following his 1 pts Given the following historical returns, what was the historical risk premium for corpore bonds? What was the historical risk premium for the "Market"? Inflation: 2.7% S&P 500: 10.8% Treasury Bills: 3.5% Treasury bonds: 5.6% Corporate bonds: 6.67 Small Cap Stocks: 12.9% 6.6 -3.5 Historical Risk Premium Corp bonds = Historical Risk Premium "Market" = 8) (3 pts) are virtually free of any default risk and we call the rate of return on such debt the risk-free rate, and we will use it as a kind of investing benchmark. 9) (7 pts) Company GG most recent Sales for 2020 was $400 million with Net Income of $22 million. You forecast that Sales will increase by 8% over the next year (2021), the company will have a Ne profit margin of 6%, and there will be 8 million shares outstanding. a) Fill in the following blanks 2021 2020 $400 mil Sales Sales Net Income $22 mil Net Income
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