How Do You Calculate Stock Price On A Mid-Year Return On An Investment?
When the year reaches the mid-point, an investor expects a fair return on their investment. Using the gains expected on the investment, the investor can calculate the expected stock price at the closing on June 30. The expected price enables you to plan your financial investment portfolio so you keep your money in the best enterprises. Collect the portfolio records you need for your stock, and prepare to do a few calculations with price, dividend and return on investment. Write down your expected return on your investment for the period from Jan. 1 to June 30. Consider this number your financial aim that determines which price to expect. Assign the number the symbol, ROI-exp. Write out the formula. The formula includes expected ending price, P-end; expected ending dividend, Div-end; and the beginning price, P-begin. Equate the expected return on investment to the price and dividend formula for the investment growth: ROI-exp = [(P-end + Div-end)/P-begin] – 1. Find the total dollar amoun
