An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of
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An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 10 % in the coming year. At the beginning of the year, the firm had a stock market value of $10 million. At the end of the year, it had a market value of $12 million even though it experienced a loss, or negative net income, of $2.5 million. Did the analyst’s prediction prove correct? Explain using the value for total annual return.
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Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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