ipl-logo

Economic Growth In America 2004-2014 Essay

1462 Words6 Pages

1) What is the annual US GDP growth rate over the past 10-year period (2004-2014)?

Year 04 05 06 07 08 09 10 11 12 13 14
Growth 3.8 3.3 2.7 1.8 -0.3 -2.8 2.5 1.6 2.3 2.2 2.4

The GDP of the United States economy in 2014 was 17.7 Trillion U.S Dollars. In 2004 the GDP was stated to be at 12.2 Trillion. The GDP growth between 2004 and 2014 was a staggering 38.6%. The arithmetic average of the growth rate was 3.73%. So throughout the previous 10 years the average growth rate has been just under 4%.

Source: http://data.worldbank.org/country/united-states, http://www.statista.com/statistics/188141/annual-real-gdp-of-the-united-states-since-1990-in-chained-us-dollars/

2) What is the inflation rate over the past 10-year period (2004-2014? Explain …show more content…

Use a forecast horizon of one year ahead. (Visit click here: WSJ online, only looking for 3 data points) What do you think about individual forecasts and the average of them (Click on the data)

The average GDP growth rate was around 2.7%. the average inflation rate is 1.2 % and the average unemployment rate is 5.1%. The economic forecast for the upcoming year looks to have some growth from my amateur interpretation of the knowledge. What seems interesting enough is that the U.S will have a strong dollar in the upcoming year which will mean a cheaper cost of importing goods and services while it last. The unemployment rate does seem to be in a steady decline but with the recent announcements by the President of the United States I believe it should be growing.Since most markets change with expectations.

Source: http://online.wsj.com/public/resources/documents/info-flash08.html?project=EFORECAST07

6) What is your prediction for the above variables? Do you expect more or less than the average forecasts, …show more content…

ROE- Is the return on equity which is the amount of NI(Net Income) returned as a percentage of equity.

EPS- is the portion of profits that’s allocated to each share of common stock.

DY- refers to the dividend yield which represents the amount of dividends paid in relation to its share price.

P/E- Price to earnings ratio is the ration of the share market price relative to is per share earnings.

Market Capitalization-(k) is the total market value of all of a companies outstanding shares.

Source: www.Investopedia.com, http;//finance.yahoo.com

10) Your explanation to PART II (see Part II below. After you finish your analysis, type your answers and conclusion in here)

The exercise led us to compare the returns of the company that begins with the first Letter of our last name. I chose to evaluate The Ford Motor Company with the (F) ticker symbol. During the time period of Jan4th 2010 and Jan 2 2015 I saw the stock price rise from $8.46 to $16.92.This was not a stady in crease in price the stock has been quite volatile and has ranged around those different prices. I was also able to analyze the S&P 500 over the same period. The S&P unlike the Ford motor Company has nearly doubled. So clearly the Ford Motor company is not closely correlated with the S&P

Open Document