question archive Company Commonwealth Bank of Australia (CBA) Share price 30 June 2009 $39
Company Commonwealth Bank of Australia (CBA) Share price 30 June 2009 $39
Subject:FinancePrice: Bought3
Company
Commonwealth Bank of Australia (CBA)
Share price 30 June 2009
$39.00
Share price 30 June 2010
$48.64
Operating cash flow 2010($m)
3445
Issued shares (million)
1644
- What is the simple rate of return on CBA shares for the year ended 30 June 2010?
- What is the six-monthly compound rate of return on CBA shares for the year ended 30 June 2010?
- What is the continuously compound rate of return on CBA share for the year ended 30 June 2010?
- Assume you invest $1000 at the beginning of the year and the money earns the same rate of return as CBA share over 2010. How much would you have by the end of the year?
- Assume that the discount rate is 7% and the operating cash flow of CBA remains at the current level for the next 15 years, and then increases by 20% and remains at that level forever. What would be the value of CBA’s shares?
- Assume that the discount rate is 7% and the operating cash flow of CBA grows at 2.5% a year forever. What would be the value of CBA’s shares?
- Using the market capitalization of CBA as at 30 June 2010, what annuity over 30 years is equivalent in value assuming a discount rate of 7%?
|
Company |
Commonwealth Bank of Australia (CBA) |
|
Share price 30 June 2009 |
$39.00 |
|
Share price 30 June 2010 |
$48.64 |
|
Operating cash flow 2010($m) |
3445 |
|
Issued shares (million) |
1644 |
- What is the simple rate of return on CBA shares for the year ended 30 June 2010?
- What is the six-monthly compound rate of return on CBA shares for the year ended 30 June 2010?
- What is the continuously compound rate of return on CBA share for the year ended 30 June 2010?
- Assume you invest $1000 at the beginning of the year and the money earns the same rate of return as CBA share over 2010. How much would you have by the end of the year?
- Assume that the discount rate is 7% and the operating cash flow of CBA remains at the current level for the next 15 years, and then increases by 20% and remains at that level forever. What would be the value of CBA’s shares?
- Assume that the discount rate is 7% and the operating cash flow of CBA grows at 2.5% a year forever. What would be the value of CBA’s shares?
- Using the market capitalization of CBA as at 30 June 2010, what annuity over 30 years is equivalent in value assuming a discount rate of 7%?
