1. In Yahoo! Finance, find the closing price for a company in your country. Find the price exactly 4 years before. What was your annual return over the last 4 years assuming you purchased the equity at the closing price 4 years ago? (Assume no dividends were paid.)
Using this same return, what price will the company sell for 5 years from now? And 10 years from now? What if the stock price increases at 11 per cent per year? Are these figures realistic? Explain.
2. Find the share price for a company in your country by visiting Yahoo! Finance. You find an analyst who projects the share price will increase 12 per cent per year for the foreseeable future. Based on the most recent share price, if the projection holds true, when will the share price be 10 times higher? When will it be 20 times higher?