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Total Annual Return

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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 values for total annual return.

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Solution Summary

The expert explains using the values for total annual returns.

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Opening Market Value = $10 Million
Closing market value = $12 Million

Capital Appreciation = ...

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Education
  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
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