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anonymous
 one year ago
Can someone help me determine the ROI?
anonymous
 one year ago
Can someone help me determine the ROI?

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anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I know the equation is the final value  initial investment/initial investment

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0however when i calculated the initial investment for this assignment i got that it was 6694

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0now i am having complications calculating the final value bc it is not stated here

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2ok post the problem so I can have a look

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I know that I have to use the compund interest formula

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0the principal value would be the 6694 but i am not sure how am i supposed to plug in the rest

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0and its a file though bc the students have to look for the information at a website called the nyse and i am doing research on the coca cola company @jim_thompson5910

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2a text file? or something like it?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0i am not sure if this will help https://www.nyse.com/quote/XNYS:KO

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0take a look at it @jim_thompson5910

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2ok reading now

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2ok so you bought 200 shares in 1998 and sold them all in 2008 and you're trying to find the ROI, correct?

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2assuming you bought the 200 shares at the closing price, you have the correct cost $33.47*200=$6694

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2now also assume you sell the 200 shares at the closing price in 2008 closing price per share = $30.93 30.93*200 = 6,186

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2\[\Large \text{ROI} = \frac{\text{Total Revenue}  \text{Total Cost}}{\text{Total Cost}}\] \[\Large \text{ROI} = \frac{6186  6694}{6694}\] \[\Large \text{ROI} = \frac{508}{6694}\] \[\Large \text{ROI} \approx 0.07588885569167\] The negative ROI means that you lost money. So this is a bad investment. Of course, the decision to sell when the price per share in 2008 is lower than the price per share in 1998, is the reason why this is a bad decision.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Can you help me do the same for todays investment

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2notice how it says "High:$31.36" so there is no way to get a positive ROI if you sell the shares in 2008

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2recall that the stock market sharply plunged in 2008, so selling stocks would have made a negative ROI on many stocks

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2June 22, 2015 Close:$40.48 Assume you sell the shares at the closing price

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Revenue = (# of shares)*(price per share) = 200*40.48 = 8,096

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2what ROI do you get?

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Yep \[\Large \text{ROI} = \frac{\text{Total Revenue}  \text{Total Cost}}{\text{Total Cost}}\] \[\Large \text{ROI} = \frac{8096  6694}{6694}\] \[\Large \text{ROI} = ???\]

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2correct, so you made some money if you sold in 2015 (in contrast to 2008 where you lost money)

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0thank you so much jim
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