Suppose a stock had an initial price of $35.74 per share, paid a dividend of $1.82 per share during the year, and had an ending share price of $33.18. Compute the percentage total return. Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35)
Q: Calculate the Weighted Average Cost of Capital (WACC) Cost of Equity = 11.02% Cost of Debt = 5.35%…
A: In the given case, we have provided the cost of debt and cost of equity . Debt equity ratio is also…
Q: 2. Calculate the amount of interest and principal paid in each month based on the history of…
A: An amortization schedule is a table that shows the breakdown of each periodic payment for an…
Q: What is the difference between a normal yield curve and an inverted yield curve In a normal yield…
A: Several options have been given to explain the difference between the normal yield curve and an…
Q: 2. How might a sudden increase in people's expectations of future real estate prices affect interest…
A: Future real estate prices means expected price or value of real estate assets at a particular point…
Q: If Treasury bills are currently paying 6.25 percent and the inflation rate is 1.8 percent, what is…
A: The real rate refers to the rate of interest that is being received by the investors, and lenders,…
Q: A promissory note for $800 00 dated January 15, 2017, requires an interest payment of $140.00 at…
A: A promissory note refers to a legal document that includes the promise by the borrower to repay a…
Q: March of 2020 PepsiCo, Inc. (PEP) sold $750 million worth of 25-year 500% coupon bonds that pay…
A: Coupon Rate = 5% Market price = $1004.21 Face Value = $1,000 Flotation Cost = $19.83 Corporate Tax…
Q: What is the payback period on each of the above projects? Given that you wish to use the payback…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: If the Garnett Corp. has a 25 percent ROE and a 18 percent payout ratio, what is its sustainable…
A: Return on Equity = ROE = 25% Payout Ratio = 18%
Q: ← Time Warner shares have a market capitalization of $55 billion. The company just paid a dividend…
A: Value of equity = $55 billion Current dividend = d0 = $0.45 Price per share = p = $25 Growth rate =…
Q: Question1: Moore Company is about to issue a bond with semiannual coupon payments, a coupon rate of…
A: 1a To calculate the bond price, we can use the formula for the present value of a bond: Bond price =…
Q: A stock has had returns of -19.1 percent, 29.1 percent, 25.2 percent, -10.2 percent, 34.9 percent,…
A: r1 = - 0.191 r2 = 0.291 r3 = 0.252 r4 = - 0.102 r5 = 0.349 r6 = 0.271 Number of returns (n) = 6
Q: You are saving for retirement. You deposit $225 each month at 3.25% annually interest for 25 years.…
A: Compound = monthly = 12 Payment = p = $225 Interest rate = r = 3.25 / 12 % Time = t = 25 * 12 = 300…
Q: YTM is 4%, how much does the bond currently sell for? Does the bond sell at a discount, premium, or…
A: Since the coupon payment is semi annually so take periods as 60 , copon payment 40 and YTM @ 2%
Q: Generally the smaller the value of a stock transaction, the higher the percentage commission charged…
A: False. In general, the percentage commission charged on a stock transaction tends to decrease as the…
Q: 4. A plant manager considers the operational cost per hour of five machine alternatives. The cost…
A: Introduction: Optimistic criterion is a technique used for making decision under uncertainty. Under…
Q: A CMBS issuance is $1,000,000,000, of which the AAA tranches total $850,000, 000 of principal…
A: To calculate the subordination level of a tranche in a CMBS (Commercial Mortgage-Backed Security)…
Q: Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It…
A: 1. Cost of Machine = purchase price + installation costs. 2. Depreciation per year = cost of Machine…
Q: Tony deposits 1000 into a saving account. For the first 5 years the money accumulates with a force…
A: Accumulation of an investment occurs at different rates, in different time periods. The overall rate…
Q: Ahmed is a young BBA Graduate from MEDIU and has just started working as an administrative executive…
A: To help Ahmed raise the funds he needs, here are several potential sources of fund inflows that he…
Q: Find the accumulated value of a 12-year annuity-immediate of 100 per year if the effective rate of…
A: The accumulated value of an annuity is to be found out. Only caution here, is that interest rate…
Q: A student can afford to spend no more 150 e per month on a loan to pay his college fees. If the…
A: Compound = monthly = 12 Payment = p = 150 Interest rate = r = 2 / 12% Time = t = 5 * 12 = 60
Q: Finance Here’s some info on a company: Debt 50,000 bonds outstanding with a par value of $1000 and…
A: Weighted average cost of capital(WACC) is average cost of capital. WACC = Weight of equity*Cost of…
Q: The traditional line-item budget results in which of the following benefits? Appropriations are…
A: There are different methods of budgeting in organizations. One of these methods is traditional…
Q: You should not buy it since the fair return is greater than the actual return.
A: holding period return is actual return 8%
Q: 10. Grullon Co. is considering a 8-for-3 stock split. The current stock price is $70.00 per share…
A: A stock split is when a company increases the number of shares by reducing the face value of shares.…
Q: c) A risk-neutral competitive market maker clears the market for trading in a stock after observing…
A: To solve this problem, we need to determine the expected profits of the informed trader for each…
Q: Your portfolio consists of 75 shares of CSH and 60 shares of EJH, which you just bought at 21 and…
A: Here, Part A. Particulars Shares (A) Price per share (B) CSH 75 21 EJH 60 30 Fraction…
Q: Holding other factors constant, which one of the following bonds has the smallest price volatil-…
A: A bond is a financial security that pays certain percentage of interest (called coupon interest) on…
Q: What is the value of a put option if the underlying stock price is $50, the strike price is $43, the…
A: A put option needs to be valued using the Black Scholes option valuation model. As per the model,…
Q: The plant manager of Shenzhen Electronics Company is considering the purchase of new automated…
A: Pay back period refers to time period in which initial investment of the project is recovered by the…
Q: Interpret the following stock price quote. In addition, what is Sizzler's approximate earnings per…
A: Price of the stock is the last trading price given. Here, price of the stock Sizzler is 6
Q: Company Z hired you as a consultant to estimate the company's WACC. You have obtained the following…
A: The question is based on the concept of Capital Budgeting The weighted Average Cost of Capital is…
Q: he Riverton Company, announced a $570,505 million expansion of lodging properties, ski lifts, and…
A: The internal rate of return is the rate at which the present value of cash inflows becomes equal to…
Q: A company has to choose one of the following two actually exclusive machine. Both the machines have…
A: To calculate the Net Present Value (NPV) of each machine, we need to discount the cash inflows at a…
Q: 9. You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic…
A: NPV is a capital budgeting techniques. it is also known as Net Present value method. It help in…
Q: Which of the following is a feature that distinguishes a traditional performance budget from other…
A: Quantitative performance objectives for agencies and departments is a feature that distinguishes a…
Q: Company Z forecasts a positive Free Cash Flow for the coming year, with FCF1 = $20,000,000, and it…
A: Free cash flow (FCF 1)=$20,000,000 The growth rate for two years=20% At year 3, Growth rate=5%…
Q: What is the yleld to maturity of a nine-year, $5,000 bond with a 4,5%coupon rate and semiunnual…
A: A bond is a kind of debt security issued by the government and private companies for raising funds…
Q: You want to buy a car and have negotiated a sale price of $50,000. You can get a loan from your…
A: Present value = pv = $50,000 Compound = monthly = 12 interest rate = r = 6 / 12 = 0.5% Time = t = 6…
Q: Company Z's bonds currently sell for $1,150 and have a par value of $1,000. They pay a $90.00 annual…
A: Here, Particulars Values Current selling price (PV) $1,150.00 Face value of the bond (FV)…
Q: You own a portfolio of risky, 10-year bonds with a contractual yield of 7%/year. You expect 4% of…
A: To calculate the expected yield per year, we need to take into account both the yield on the bonds…
Q: True or false: A program budget format can help government agencies align budget needs to the needs…
A: True. A program budget format can help government agencies align budget needs to the needs of the…
Q: Flaherty is considering an investment that, if paid for immediately, is expected to return $156,000…
A: Future value = fv = $156,000 Time = t = 9 years rate of return = r = 10%
Q: Stock Z has a beta of 1.4, and its required rate of return is 10.00%. Stock B's beta is 0.80. If the…
A: In the given case, we have provided the stock Z beta, required rate of return and risk free rate.…
Q: A stock has a beta of 1.11, the expected return on the market is 10.5 percent, and the risk- free…
A: Beta (B) = 1.11 Market return (MR) = 10.5% Risk free rate (RF) = 4.7%
Q: Poulter Corporation will pay a dividend of $4.40 per share next year. The company pledges to…
A: We have given the expected dividend per share for the next year. And, there is a constant growth…
Q: You want to start a scholarship fund at your alma mater with giving one $10,000 scholarship…
A: It needs to be checked, if with a given sum of money to start with, a scholarship in perpetuity can…
Q: An interest rate floor: OA) obligates both parties to trade at a preset price at a future date B)…
A: An agreement that sets a minimum interest rate on a loan or other financial instrument is known as…
Q: what is the bond equilavent yield on a 90-day treasury bill that has a bank discount yield of 2.07…
A: We have to find the bond equivalent yield, given the bank discount yield.
Step by step
Solved in 3 steps
- Economics the answer must be clear and need typed answer What is the rate of return when 10 shares of Stock A, purchased for $30/share, are sold for $380? The commission on the sale is $6. Rate of Return = [?]% %3D Give your answer as a percent rounded to the nearest tenth. Entera stock is selling for 11 and pays dividend of 0.12 cents, growth rate Is 0.04 what Is the requlred rate of return Next page Previous page Quiz no 13 12 11 10 8 9. 4 3 ... Finish EN Auto MenuWhat rate of return should you expect to earn on an investment in the stock described below if you bought it at its current market price? Stock A Earnings: $3.00 per share Dividend: $1.50 per share Expected growth rate: 5% Current market price: $60 per share 5.0% O 10.0% O 2.5% O7.5% Ruestion 11 How did you solve the problem above? Show your work. P Type here to search mi 75
- Fast pls solve this question correctly in 5 min pls I will give u like for sure Svtrik Stock in Lowery Company has a beta of 0.71. The market risk premium is 9.5 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 4.5 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity?This Question: 1 pt 2 of 30 (14 complete) his Test: 30 pts p... A stock is bought for $21.00 and sold for $27.50 one year later, immediately after it has paid a dividend of $1.50. What is the capital gain rate for this transaction? O A. 15.48% O B. 30.95% O C. 6.19% O D. 24.76% Click to select your answer. Mach 20 F3 D00 D00 FA esc F2 24B LL 3. hUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity Saved Help Save & Exit A stock is expected to pay dividends of $.85 and $.90 in the next two years and sell for a price of $25 at the end of two years. What will an investor who expects a 12 percent rate of return be willing to pay for this stock? Multiple Choice $13.97 219.93 $20.65 < Prev 3 of 15 5:03 PM ere to search 12/1/2021 N I acer F10 F11 F12 PrtSc Pause Home F4 F5 F6 F7 81 Scr Lk SysRq Break Su -Backspace unN ) #3 E (Y P. R Home %D Enter H K. t Shift End マ 公 ופנ 目 A.
- v Question Completion Status: QUESTION 1 A company has stock that just paid a $2.9 per share dividend. The dividend is expected to grow at 17% over the next year and then grow at a constant 3% per year forever. If the stock's required return is 10%, how much should you be willing to pay for a share of the stock? Round your final answer to two decimal places (don't round intermediate calculations). QUESTION 2 Save All Click Save and Submit to save and submit. Click Save All Answers to save all answers.If the P/E ratio in the company is 5, this means that the owner of the company is receiving $5 for every dollar the company earns Select one: O True O False Next page CHAPTER S-STOCK VALUATION vities CH3 Jump to... ENG 07:09#1 O The market price of a stock is $24.51 and it just paid a dividend of $1.94. The required rate of return is 11.26%. What is the expected growth rate of the dividend? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
- $3 DIVIDEND IN ONE YEAR, YOU EXPECTA DIVIDEND OF $2.10 IN TWO YEARS, YOU EXPECT TO RECEIVE A DIVIDEND OF $2.205 AT THE END OF YEAR 3 AND A STOCK PRICE OF $15.435. iF REQUIRED RETURN ON STOCK IS 10% AND INTEREST RATE IS 5%. HOW MUCH WILL YOU PAY FOR THE STOCK? Select one: а. 17.72 b. 20.00 С. 15.80 O d. 17.27QUESTION 9 Use the data in the table shown below. What is the geometric average return over the span of three years? Date 12/31/2018 12/31/2019 12/31/2020 12/31/2021 O a. 28.7% O b.7.5% c.9.5% O d. 8.9% Price $43.00 $45.60 $42.60 $52.50 Dividend $0.80 $0.80 $0.90A MOVING toO anotner question will save this response. Question 15 You bought a stock for $39 and you received dividends of $4. The stock is now selling for $47. What is your total percentage return? (please answer in decimal numbers, ie., use 0.05 in stead of 5%) A Moving to another question will save this response. P Type here to search 9.