Under the "Excel Analytics" link find the "Mthly. Adj. Price" for Elizabeth Arden (RDEN) stock. What was your annual return over the last four years assuming you purchased the stock at the close price four years ago? (Assume no dividends were paid.) Using this same return, what price will Elizabeth Arden stock sell for five years from now? Ten years from now? What if the stock price increases at 11 percent per year?
Calculating the Number of Periods Find the monthly adjusted stock prices for Southwest Airlines (LUV). You find an analyst who projects the stock price will increase 12 percent per year for the foreseeable future. Based on the most recent monthly stock price, if the projection holds true, when will the stock price reach $150? When will it reach $200?
