Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Describe the findings shown in the tables below. Also, based on the following data, make a comparison between the performance of Tesla (domestic company) and

Describe the findings shown in the tables below. Also, based on the following data, make a comparison between the performance of Tesla (domestic company) and Volkswagen within the same industry.

Volkswagen: Balance Sheet

Breakdown

12/31/2014

12/31/2015

12/31/2016

12/31/2017

12/31/2018

12/31/2019

Common Stock Price

$21.37

$15.49

$14.34

$20.22

$15.83

$19,40

Dividend per share

$0.54

$0.01

$0.22

$0.46

$0.54

Tesla, Inc: Balance Sheet

Breakdown

12/31/2014

12/31/2015

12/31/2016

12/31/2017

12/31/2018

12/31/2019

Common Stock Price

$43.86

$48.00

$42.74

$62.27

$66.77

$86.08

Dividend per share

No dividends

No dividends

No dividends

No dividends

No dividends

Volkswagen:

Breakdown

12/31/2015

12/31/2016

12/31/2017

12/31/2018

12/31/2019

Capital Gains Yield (CGY)=(P1-P0)/P0

(15.49-21.37)/21.37= -0.275= -27.5%

(14.34-15.49)/15.49= -0.074= -7.4%

(20.22-14.34)/14.34= 0.41=41%

(15.83-20.22)/20.22= - 0.217=

- 21.7%

(19.40-15.83)/15.83= 0.2255= 22.6%

Dividend Yield (DY)=(D1/P0)

(0.54/21.37)x100= 2.53%

(0.01/15.49)x100= 0.065%

(0.22/14.34)x100=

1.53%

(0.46/20.22)x100=

2.27%

(0.54/15.83)x100=

3.41%

Total Yield

(TY)=CGY+DY

(-27.5% + 2.53%)= -24.97%

(-7.4% + 0.065%)= -7.34%

(41% + 1.53%)= 42.53%

(-21.7% + 2.27%)=

- 19.43%

(22.6% +3.41%)= 26.01%

Tesla:

Breakdown

12/31/2015

12/31/2016

12/31/2017

12/31/2018

12/31/2019

Capital Gains Yield (CGY)=(P1-P0)/P0

(48.00-43.86)/43.86= 0.094= 9.4%

(42.74-48.00)/48.00= -0.11= -11%

(62.27-42.74)/42.74= 0.4569= 45.7%

(66.77-62.27)/62.27= 0.072= 7.2%

(86.08-66.77)/66.77= 0.289= 28.9%

Dividend Yield (DY)=(D1/P0)

0%

0%

0%

0%

0%

Total Yield

(TY)=CGY+DY

9.4%

-11%

45.7%

7.2%

28.9%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Finance Markets Investments And Financial Management

Authors: Ronald W. Melicher, Edgar A. Norton

14th Edition

0470561076, 9780470561072

More Books

Students also viewed these Finance questions

Question

Compare a C corporation to an S corporation.

Answered: 1 week ago

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago