Question: #7 Use three dimensions to compare a typical Class A share versus a Class B share issued by the #8 same company. (a) Compare
#7 Use three dimensions to compare a typical Class A share versus a Class B share issued by the #8 same company. (a) Compare Accounting return on equity (ROE) versus Investor's required rate of return (k). (b) Show the formula for each return in (a) #9 Define the following types of stock: #10 Blue Chip stock Cyclical stock Defensive stock Growth stock Speculative stock You own 1000 shares of the following stock: Year 0 Year 1 Year 2 Year 3 body Dividend $2 $0 $1 Stock Price $45 $46 $41 $44 Yearly Return - ? ? ? (a) Show and compute the annualized arithmetic return. (b) Show and compute the annualized geometric return. (a) "Find and explain" an example of a blue-chip stock. (b) Find and explain an example of a cyclical stock. (c) Find and explain an example of a growth stock.
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