A friend has confided in you that they have recently inherited a moderately sized investment portfolio from a relative. They don’t know what to do with the assets. The friend comes to you for advice. Your immediate advice, of course, is for your friend to seek professional advice from a tax expert as well as a financial adviser. Your friend persists, however, and asks how the investment returns of the portfolio compare to other investments. You agree to review the portfolio and calculate the yields of each investment as well as determine the weighted average yield for the entire portfolio.Refer to the attached investment schedule. For your quantitative analysis compute the current market value of each security position of the portfolio, calculate individual yields based on current market pricing, and determine the weighted average factor and the weighted average yields.Explain the basis upon which you determined the weighted average yield.Explain the difference between a yield that is based on cost, as opposed to one that is based on current market value. What are the different uses of both?What non-quantitative observations can you make about the portfolio? ADEGHPortfolioWeightedCurrentMarketPriceCurrent Estimated Estimated WeightedType ofStock PositionSymbol (# ofMarket Dividend/ CurrentYieldCompany NameAverageAverageInvestmentValueInterestFactorYield1shares)2 Common stock Altria3 Common stock AT&T4 Common stock Chevron5 Common stock Coca Cola6 Common stock Duke Energy$247.00 U$325.00мо11950.0417332.09UCVX26125.82$111.00ко5954.33U$77.00U$206.00$86.00DUK6587.687 Common stock Johnson & JohnsonJNJ31128.84UU8 Common stock McDonalds9 Common stock Pepsi Cola10 Common stock Philip Morris Intl11 Common stock Proctor & Gamble$176.00$44.00MCD52214.31PEP17130.74PM7086.75$280.00UUPG52113.85U$133.001213Total Portfolio Market Value14Weighte Averatge Yield:15

A portfolio is the combination of various financial assets (or instruments) that an investor holds…

Answered: A friend has confided in you that they…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 99.4C

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Preferred stock Par value Sale price Flotationcost Annual dividend A $            100 $            101 $           9.00 11% B                  40                  38 $           3.50 8% C                  35                  37 $           4.00 $           5.00 D                  30                  26 5% of par $           3.00 E                  20                  20 $           2.50 9% Stock C Par value $              35 Sale price $              37 Flotation cost $           4.00 Annual dividend $           5.00 Proceed from sale Cost of preferred stock By using cell references to the given data calculate the proceeds from sale of preferred stock C. By using cell references to the given data calucalte the cost of preferred stock C.
Preferred stock Par value Sale price Flotationcost Annual dividend A $            100 $            101 $           9.00 11% B                  40                  38 $           3.50 8% C                  35                  37 $           4.00 $           5.00 D                  30                  26 5% of par $           3.00 E                  20                  20 $           2.50 9% Stock D Par value $              30 Sale price $              26 Flotation cost (% of par) 5% Flotation cost Annual dividend $           3.00 Proceed from sale Cost of preferred stock By using cell references to the given data calculate the flotation cost of preferred stock D. By using cell references to the given data calculate the proceeds from sale of preferred stock D. By using cell references to the given data calculate the cost of preferred stock D.
Preferred stock Par value Sale price Flotationcost Annual dividend A $            100 $            101 $           9.00 11% B                  40                  38 $           3.50 8% C                  35                  37 $           4.00 $           5.00 D                  30                  26 5% of par $           3.00 E                  20                  20 $           2.50 9% Stock E Par value $              20 Sale price $              20 Flotation cost $           2.50 Annual dividend 9% Dividend payment Proceed from sale Cost of preferred stock By using cell references to the given data calucalte the dividend payment of preferred stock E. By using cell references to the given data calculate the proceeds from sale of preferred stock E. By using cell references to the given data calculate the cost of preferred stock E.
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Requirement 1. Compute AustinAustin Company's earnings per share for 20182018. Assume the company paid the minimum preferred dividend during 20182018. Round to the nearest cent. Select the formula, then enter the amounts to calculate the company's earnings per share for 20182018. (Abbreviations used: Ave. = average, OS = outstanding, SE = stockholders' equity, shrs = shares.) ( - ) / = Earnings per share ( - ) / = Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts remaining Clear All Check Answer Data Table 2018 2017 Income Statement—partial: Net Income $6,660 $20,000 Dec. 31, 2018 Dec. 31, 2017 Balance Sheet—partial: Total Assets $200,000 $265,000 Paid-In Capital: Preferred Stock—9%, $6 Par Value;…
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Solution Stock A Par value $ 100 Sale price $ 101 Flotation cost $ 9.00 Annual dividend 11% Dividend payment Proceed from sale Cost of preferred stock By using cell references to the given data calculate the proceeds from sale of preferred stock A
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Stock B Par value $ 40 Sale price $ 38 Flotation cost $ 3.50 Annual dividend 8% Dividend payment Proceed from sale Cost of preferred stock By using cell references calculate the dividend payment of preferred Stock B. By using cell references calculate the proceeds from sale of referred stock B. By using cell references calculate the cost of preferred stock B.

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