Which calculation? - Aussie Stock Forums

# Thread: Which calculation?

1. ## Which calculation?

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

2. ## Re: Which calculation?

Originally Posted by 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
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

3. ## Re: Which calculation?

Originally Posted by CanOz
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

4. ## Re: Which calculation?

Originally Posted by burglar
Might be a trick question?
£1000, \$5
hmm, nice spot...should have converted pounds to Aussie Dollars and then done it.

5. ## Re: Which calculation?

Originally Posted by CanOz
hmm, nice spot...should have converted pounds to Aussie Dollars and then done it.
Probably US dollars!

6. ## Re: Which calculation?

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

What is your preference?

Many thanks

7. ## Re: Which calculation?

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

What is your preference?

Many thanks
20%

8. ## Re: Which calculation?

Originally Posted by viciam
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.

9. ## Re: Which calculation?

Originally Posted by Ves
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...

10. ## Re: Which calculation?

Originally Posted by CanOz
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!

11. ## Re: Which calculation?

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

No humor (humour) intended!
I think!?

12. ## Re: Which calculation?

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?

13. ## Re: Which calculation?

Originally Posted by 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?
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

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