An analyst predicted last year that the stock of logistsics, Inc would offer a total return of at least 15% in the coming year. At the begginning of the year, the firm had a stock market value of $5 million. At the end of the year, it had a market value of $6 million even though it experienced a loss, or negative net income, of $2.5 million. Did the analyst's prediction prove correct? Explain using the values for total annual return.
The total rate of return for the firm is?
Did the analysts's prediction prove correct?