Which calculation?

[viciam]

Hi,

If I want to invest £1000 in a company that has a share price of $5 how do I work out what the share price must hit in order for me to achieve a 8% return.

Thanks

 

[CanOz]

Hi,

If I want to invest £1000 in a company that has a share price of $5 how do I work out what the share price must hit in order for me to achieve a 8% return.

Thanks

err...5 + 8% = 5.4

1000 / 5 = 200 shares

buy 200 shares at 5

sell 200 shares at 5.4

.4 x 200 = 80

80 = 8% of 1000

CanOz

 

[burglar]

err...5 + 8% = 5.4

1000 / 5 = 200 shares

buy 200 shares at 5

sell 200 shares at 5.4

.4 x 200 = 80

80 = 8% of 1000

CanOz

Might be a trick question?
£1000, $5

 

[CanOz]

Might be a trick question?
£1000, $5

hmm, nice spot...should have converted pounds to Aussie Dollars and then done it.

 

[burglar]

hmm, nice spot...should have converted pounds to Aussie Dollars and then done it.

Probably US dollars!

 

[viciam]

What is the standard recommended rate of return by Buffett, Templeton etc

What is your preference?

Many thanks

 

[CanOz]

What is the standard recommended rate of return by Buffett, Templeton etc

What is your preference?

Many thanks

20%

 

[Ves]

What is the standard recommended rate of return by Buffett, Templeton etc

Do you mean the discount rate or internal rate of return used to find the net present value of cash flows? If so, there is no "standard recommended" value for this.

 

[CanOz]

Do you mean the discount rate or internal rate of return used to find the net present value of cash flows? If so, there is no "standard recommended" value for this.

Everything is a little vague here Ves...

 

[Ves]

Everything is a little vague here Ves...

This whole thread confuses me... but I guess that's all I can make of it without any further info! I do admit, I had a good laugh over the exchange rate based comments!

 

[burglar]

This whole thread confuses me... but I guess that's all I can make of it without any further info! I do admit, I had a good laugh over the exchange rate based comments!

viciam is in the UK and buys on the NYSE
So it's pounds and US dollars!!

No humor (humour) intended!
I think!?

 

[viciam]

I was just trying to figure out what price the stock needs to hit in order for me to make an 8% return.

Is it not wise to buy stocks whilst living in London on the international stock markets? Should I stick with the London Stock Exchange only? That's kind of limiting myself isn't it? Or is there nothing stopping me from buying stocks on any exchange that I wish?

 

[CanOz]

I was just trying to figure out what price the stock needs to hit in order for me to make an 8% return.

Is it not wise to buy stocks whilst living in London on the international stock markets? Should I stick with the London Stock Exchange only? That's kind of limiting myself isn't it? Or is there nothing stopping me from buying stocks on any exchange that I wish?

No, your fine mate... just a bit scetchy on the details and the currency. Convert your pounds to whatever and run my calculation again.

CanOz