A) A stock had returns of 12 percent, 19 percent, 19 percent, -10 percent, 19 percent, and 14 percent over the last six years. What is the arithmetic return for the stock? What is the geometric return for the stock?

B) Solo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 $ 12,800 1 6,200 2 6,800 3 6,300 4 5,200 5 4,400 The company uses a discount rate of 11 percent and a reinvestment rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates. a. MIRR using the discounting approach. b. MIRR using the reinvestment approach. c. MIRR using the combination approach.

Question

A) A stock had returns of 12 percent, 19 percent, 19 percent, -10 percent, 19 percent, and 14 percent over the last six years. What is the arithmetic return for the stock? What is the geometric return for the stock?

B) Solo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 $ 12,800 1 6,200 2 6,800 3 6,300 4 5,200 5 4,400 The company uses a discount rate of 11 percent and a reinvestment rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates. a. MIRR using the discounting approach. b. MIRR using the reinvestment approach. c. MIRR using the combination approach.

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A) A stock had returns of 12 percent, 19 percent, 19 percent, -10 percent, 19 percent, and 14 percent over the last six years. What

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