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HW5A (Value of stock using multiples; Value and Expected rate of return on preferred stock)
Question 1
A company has total assets of $561 million and total liabilities of $283 million. If the company has 47 million shares outstanding that are currently priced at $54.86 per share, what is the firm's price/book value (P/BV) ratio?
Round the answer to two decimals.
Your Answer: 9.27
Question 2
Big Success Co, a no-growth company, has a required rate of return of
11.44 percent. The company has earnings per share of $2.85. Calculate intrinsic value of the stock (the current stock price).
Round the answer to two decimals..
Your Answer: $24.91
HW5A (Value of stock using multiples; Value and Expected rate of return on preferred stock)
Question 3
UPS preferred stock pays $5 in annual dividends. If your required rate of return is 11.56 percent, how much would you be willing to pay for one share of this preferred stock? Round the answer to two decimal places.
Your Answer: 43.25
Question 4
Golden Rod Corp.'s preferred stock is currently selling for $32.79. The company pays $6.80 annual dividends on this preferred stock. Which rate of return does the investor expect to receive on this stock if the stock is purchased today?
Round the answer to two decimal places in percentage form.
(Write the
percentage sign in the "units" box)
Your Answer: 20.74%
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Using the p/e multiples approach solve this question
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On a particular date, FedEx has a stock price of $88.24 and an EPS of $7.36. Its competitor, UPS, had an EPS of $0.30.
What would be the expected price of UPS stock on this date, if estimated using the method of comparables?
Question content area bottom
Part 1
A.$5.40
B. $7.19
C.$8.00
D.$3.60
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Solve question 2 (context in question 1, attached)
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H5.
Show All Step by step calculation
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Dividends on Preferred and Common Stock
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a
six-year period: 20Y1, $36,000; 20Y2, $72,000; 20Y3, $162,000; 20Y4, $207,000; 20Y5, $261,000; and 20Y6, $315,000. During the entire period
ended December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, preferred 3% stock, $100 par,
and 100,000 shares of common stock, $10 par.
Required:
1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in
arrears at the beginning of 20Y1. Summarize the data in tabular form. If reguired, round your per share answers to two decimal places. If the amount is
zero, please enter "0".
Preferred Dividends
Common Dividends
Total
Dividends
Year
Total
Per Share
Total
Per Share
20Y1
$36,000
3,600 X
1.2 V
0.
24
1.2 X
20Y2
72,000
72,000…
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What is the price of a stock at the end of Year 1 (P1) if the dividend for Year 2 (D2) is $5, the price at the end of Year 2 (P2) is $20, and the discount rate is 10 percent? (Round your answer to two decimal places.)
Multiple choice question.
$22.73
$25.00
$19.73
$18.18
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Provide this question solution general accounting
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Sh5
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#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))
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2
Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65
per share during the year, and had an ending share price of $83. Compute
the percentage total return.
3
4
5
6
Initial price
7
Dividend paid
8 Ending share price
9
10 (Use cells A6 to B8 from the given information to complete this question.)
11
Input area:
12 Output area:
13
14 Total return
15
$74
$1.65
$83
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What was the dollar-weighted (money-weighted) rate of return?
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Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place
44. Assume that the current market price of Zigi, Inc. stock is $54.59. If Zigi, Inc. just paid a dividend of $4.57per share (i.e., D0 = 4.57), and if investors expect that the company’s dividends will grow at an annual rate of2.47% forever, then Zigi, Inc.’s required rate of return is ____%. (Record your answer rounded to 1 decimalplace; for example, record 18.29654% as 18.3).45. Phillips, Inc. just paid a dividend of $3.25 per share on its common stock (that is, D0 = 3.25). Investors expectthe dividend to grow at 45% in years 1 and 2, they expect the dividend to grow at 25% in year 3 and theyexpect that all future dividends (that is, dividends in years 4, 5, ..., infinity) to grow at a constant rate of 5%per year. If the cost of capital for Phillips, Inc. stock is 18%, what is the current price of the stock?
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1. A stock has had the following year-end prices and dividends:
Dividend ($)
Year
1
2
3
4
5
6
Price ($)
93.75
94.42
95.5
93.24
94.65
97.9
1.38
1.36
1.72
1.76
1.95
What is the geometric average return for the stock? Answer as a percentage to two decimals (if
you get -0.0435, you should answer -4.35).
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BASIC (Questions 1-18)
1. Calculating Returns Suppose a stock had an initial price of $87 per share,
paid a dividend of $2.15 per share during the year, and had an ending share
price of $98. Compute the percentage total return. What was the dividend
yield? The capital gains yield?
LO 1
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Need help with this question solution general accounting
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Suppose a firm issues a dividend of $10.00 per share and plans to issue a constant dividend of $2.00 per share starting from year 1. What is the stock price of the firm's common share? Suppose the discount rate is 9%
(rounded to the 2nd decimal place in a percentage) (eg, 33.33%)
ubmit. Click Save
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What effect will a two-for-one stock split have on the following items found on a firm's financial statements?
a. Earnings per share $5.00. Round your answer to the nearest cent.
Initial amount
$5.00
$
b. Total equity $10,000,000. Round your answer to the nearest dollar.
Initial amount
$
New amount
Initial amount
$4,000,000
New amount
$10,000,000
c. Long-term debt $4,600,000. Round your answer to the nearest dollar.
Effect
$
New amount
Effect
Initial amount
$4,600,000
$
d. Additional paid-in capital $1,689,000. Round your answer to the nearest dollar.
Effect
New amount
$
New amount
-Select-
Effect
New amount
Initial amount
$1,689,000
e. Number of shares outstanding 800,000. Round your answer to the nearest whole number.
Initial amount
800,000
f. Earnings $4,000,000. Round your answer to the nearest dollar.
Effect
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-Select-
-Select-
Effect
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-Select-
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ADC
1) Based on End-of-Chapter Problem 6 in Chapter 5
The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-
of-year price depend on the state of the economy by the end of the year as follows:
Stock Price
Dividend.
$2.00
$50
1.00
43
0.50
34
a. Calculate the expected holding-period return and standard deviation of the holding-
period return. All three scenarios are equally likely.
Boom
Normal economy
Recession
b. Calculate the expected return and standard deviation of a portfolio invested half in
Business Adventures and half in Treasury bills. The return on bills is 4%.
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Solve this financial accounting question answer do fast
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please help need answer for both questions with working please underline answer both question or skip/leave thanks
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What is the solution and the working
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At.3
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V
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