Problem 12.04 – Calculating Returns
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Given the information on the bond, find your total dollar return, total nominal rate, and the total real rate of return.
Given the information on the bond, find your total dollar return, total nominal rate, and the total real rate of return.
Find the average annual return on large-company stocks in nominal and real terms.
Using long-term government bonds, corporate bonds, and inflation… find the historical real return on long-term government and corporate bonds.
Given the stock returns, find the arithmetic and geometric average returns.
Find the arithmetic and geometric average returns for the stock with the given prices and dividends.
Determine how many to order each time, the number of orders per year, days between orders, average inventory, and order cost.
Classify the inventory items at Boreki Enterprise into ABC classifications.
Determine the optimal stocking level for Enrique Correa’s bakery to maximize profit.
Sells cakes and day-old cakes and asks for optimum stocking level.
Calculate the cost of underestimating, overage cost per program, the ideal number of programs to order per game, and stockout risk.