Ch 08: Assignment - Risk and Rates of ReturnElle nolas a $5,000 portrollo that consists or rOur stocKs. Her investment in eacn stock, as well as each stock's beta,is listed in the following table:Standard DeviationStockInvestmentBetaPerpetualcold Refrigeration Co. (PRC)$1,7500.9012.00%Zaxatti Enterprises (ZE)1.70$1,00011.00%Western Gas & Electric Co. (WGC)$7501.1018.00%Makissi Corp. (MC)$1,5000.4025.50%Suppose all stocks in the portfolio were equally weightedSuppose all stocks in Elle's portfolio were equallyweighted. Which of these stocks would contribute theWhich of these stocks would have the least amount ofleast market risk to the portfolio?standalone risk?Makissi Corp.Perpetualcold Refrigeration Co.Makissi Corp.Western Gas & Electric Co.Zaxatti EnterprisesZaxatti EnterprisesWestern Gas & Electric CoO Perpetualcold Refrigeration Co.If the risk-free rate is 7% and the market risk premium is 9%, what is Elle's portfolio's beta and required return? Fillin the following table:Required ReturnBetaElle's portfolioO O O O

Multiple choice question: First oneBeta is an indicator of market risk. Hence the stock with least…

Answered: Ch 08: Assignment - Risk and Rates of…

Corporate Fin Focused Approach

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Publisher:EHRHARDT

Chapter14: Distributions To Shareholders: Dividends And Repurchases

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You have been provided with the following information for the year ended 30 June 2022 for ABCLtd:RNet profit for the year -R1 800 000Weighted average number of shares (WANOS) outstanding during the year-R 120 000Average fair value per share -R30.00Weighted average number of shares (WANOS) under option during the year -R25 000Exercise price for shares under option during the year -R28.00REQUIRED:Q.2.1 Explain the purpose and objective of disclosing diluted earnings per share.
31 - The stock movements of entity A are as follows. Calculate STMMAVAILABLE OF GOODS PER PERIOD: 50000 TLPERIOD PURCHASES: 90000 TLFINANCIAL AVAILABILITY AT THE END OF THE TERM: 20000TLA) 120.000 TLB) 70.000 TLC) 60.000 TLD) 100.000 TLE) 130.000 TL
A preferred stock from Duquesne Light Company (DQU-PRA) pays $2.10 in annual dividends. If the required rate of return on the preferred stock is 5.4 percent, what is the fair present value of the stock? Please show the solution/ formula used for me so i'll be able to understand it clearly. Thank you
Q-1: EBIT of Shell for year 2010 is Rs. 4,000,000. It pays Rs. 2000,000 as dividend. Its number of sharesoutstanding is 2,000,000 par values Rs. 50 each sold at discount at Rs. 40 each. Retained earningsbalance on January 1, 2010 was Rs. 1,2000,000. Assume there is no preferred stock, beta of Shell is 0.5,risk free rate on T-bills is 14% and market risk premium 6%. Interest expense is Rs. 500,000, tax rate is40% and book value of long term debt is 3 million. Calculate WACC for Shell Company.
A preferred stock from Hecla Mining Co. (HLPRB) pays $3.50 in annual dividends.If the required return on the preferred stock is 6.8 percent, what is the value of the stock? (Round your answer to 2 decimal places.) Please avoid solutions image based thnx
Why do you deduct or subtract 1 to flotation cost? Example: Given; Annual dividend (D) = $4.75 Flotation cost (F) = 0.05 or 5% Number of shares issued (N) = 10,000 Stock price (P0) = $50 Formula; Total value able to receive = N * P0 * (1 - F) Total value able to receive = 10,000 * $50 * (1 - 0.05) Total value able to receive = $500,000 * 0.95 Total value able to receive = $475,000
Problem 1. Gene Company has a portfolio of trading securities as of December 31, 2020 as follows: Cost Fair Value 15,000 ordinary shares of Terry Co. P 477,000 P 417,000 30,000 ordinary shares of Gina Co. 546,000 570,000 P1,023,000 P 987,000 All of the above securities were purchased in 2020. The following transactions related to the securities occurred in 2021: Mar 1. Sold 15,000 shares of Terry Co. at P31 less brokerage commission of P4,500. Apr 1. Bought 1,800 shares of Wendy Co. at P45 plus commission, taxes, and other transaction costs of P1,650. On December 31, 2021, the Company’s investment portfolio appears as follows: Cost Fair Value 30,000 ordinary shares of Gina Co. P 546,000 P 580,000 1,800 ordinary shares of Wendy Co. 82,650 75,000 P 628,650 P 655,000 The fair values excludes the estimated transaction costs that would be incurred on the…
Q13 A preferred stock from Duquesne Light Company (DQUPRA) pays $3.55 in annual dividends.If the required return on the preferred stock is 6.7 percent, what’s the value of the stock? (Round your answer to 2 decimal places.) VALUE OF STOCK-----
XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2018 $ 110 $ 3 2019 113 3 2020 100 3 2021 105 3 An investor buys four shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all five remaining shares at the beginning of 2021. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus…
A preferred stock from Duquesne Light Company (DQUPRA) pays $3.55 in annual dividends.If the required return on the preferred stock is 6.7 percent, what’s the value of the stock? (Round your answer to 2 decimal places.)
Question 1On 1st January 2021, Nkana Plc issued 80 million K1 preferred shares at a premium of K0.5 each. Issue Costs totalled K1.5 million. The shares carry a fixed dividend of 6%. The dividend is paid annually in arrears on the 31st of December. The shares will be redeemed on 1st January 2026 at a premium of K73.6m. The effective rate of interest on these shares is 9%.Required:Show how these shares will be reported in the financial Statements of Nkana plc for the years 2021 to 2025. Nkana plc’s year-end is 31st December.
Question content area top Part 1 (Preferred stock valuation) Kendra Corporation's preferred shares are trading for $29 in the market and pay a $4.70 annual dividend. Assume that the market's required yield is 17 percent. a. What is the stock's value to you, the investor? b. Should you purchase the stock? Question content area bottom Part 1 a. The value of the stock to you, the investor, is $enter your response here per share. (Round to the nearest cent.)

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