Question
The management of Ark Industries wants to analyze the performance of the companys stock in the stock market. They want to compare the stock performance
The management of Ark Industries wants to analyze the performance of the companys stock in the stock market. They want to compare the stock performance with Apex Inc, a strong competitor in the industry, and the market index. The following data is available for managerial finance analysis.
Year | Ark Industries | Apex Incorporated | Market Index | ||||
Capital gain/loss | Dividend | Purchased Price | Capital gain/loss | Dividend | Purchased price | Rate of Return | |
2020 | $6.79 | $2.23 | $23.53 | $5.80 | $3.52 | $79.32 | 51.8% |
2019 | -$5.08 | $2.65 | $28.61 | $5.00 | $3.65 | $74.32 | 1.30% |
2018 | $13.40 | $2.73 | $15.21 | -$12.80 | $3.45 | $87.12 | 11.90% |
2017 | $2.58 | $2.57 | $12.63 | -$8.00 | $3.47 | $95.12 | 13.90% |
2016 | -$0.58 | $2.23 | $13.21 | $10.88 | $3.55 | $84.25 | 15.80% |
*Capital gain = difference between ending price and beginning price
- James Bond wants to determine the required rate of return on two stocks (stock A and stock
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