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- On the advice of your uncle, you purchased 10 shares of a well-established U.S.-based corporate stock for $21 per share. After 1 quarter, you received $0.25 per share dividends each quarter for 2 years. At that point, the stock price had gone down in a short-term recession, so you purchased 10 more shares at $18 per share. The stock continued to pay 25¢ a share on all 20 shares. After 3 years (12 quarters), you decided to sell the stock since it had increased in market value to $24 per share. Make the following assumptions: (a) no commissions for the purchase or sale of the stock, (b) no government taxes on the dividends, and (c) quarterly compounding of the rate of return. What is the effective interest rate per year? The effective interest rate per year is %.Phil’s Flowers (PF) currently has 5,600,000 shares of stock outstanding that sell for $117 per share. Assuming no market imperfections or tax effects exist, what will be the total number of shares and the share price after each of the following? (Please consider each one independently). c) PF has a $2.50 cash dividend? (Step by step solutions )How is the M 2money stock measured in South Africa? List ALL the components
- If a firm earns $375 billion in profits for the year and they retain $218 billion, what is the percent dividend payout rate?assuming that the average duration of its $100 million of assets is four years, while the average duration of its $90 million of liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of first national to increase by ______ % (negative if it is a decline) of the total original asset value.You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The stock's current market price is $24.50, and you expect to sell it for $55 in four years. You also expect the stock to pay an annual dividend of $1.25 at the end of Year 1, $1.35 at the end of Year 2, $1.45 at the end of Year 3, and $1.55 at the end of Year 4. What is your expected return from this investment? Please show all the steps, including the equation(s).
- Which of the following conditions must hold true for the constant growth valuation formula to be useful and give meaningful results? The company’s growth rate needs to change as the company matures. The company’s stock cannot be a zero growth stock. The required rate of return, rss, must be greater than the long-run growth rate.The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 26% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 21% per year. Required: a. What is your estimate of the intrinsic value of a share of the stock? Note: Use intermediate calculations rounded to 4 decimal places. Round your answer to 2 decimal places. b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield? Note: Use intermediate values rounded to 2 decimal places. Round your answer to 2 decimal places. c. What do you expect its price to be one year from now? Note: Use intermediate values rounded to 4 decimal places. Round your answer to 2 decimal places. d-1. What is the implied capital gain? Note: Use intermediate values rounded to 2 decimal places. Round your answer to 4 decimal places. d-2. Is the implied capital gain…Under-capitalization of a business entity causes:a) a situation when current assets are financed from long-term capital.b) a situation when long-term assets are financed from short term financial resources.c) a situation when the respective business entity is spending more capital than it is able to gain.d) a situation when long-term assets are financed from short term receivables.
- The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared? Group of answer choices.... $60,000. $20,000. $120,000. $100,000.According to the company’s ACT 2019, Act 992 of Ghana, it is mandatory for every registered company to organise an annual general meeting (AGM). The AGM shall be held not earlier than twenty one days after the annual reports which comprises the Financial statement, reports of the directors and auditors on the financial statements have been dispatched to shareholders and debenture holders of the company However, in recent times a number of investigations have been conducted by the department of Accounting and finance at Ghana Technology university college into the use made by shareholders of the annual reports of companies in which they have invested . Several of these research shows that the annual report is regarded as an important source of information for making decisions on equity investment. Other types of study indicate that the market price of the shares in companies does not react to in the short term to the publication of the company’s annual report Requires; How…Victor and Maria Hernandez Wonder About Investing Victor and Maria have decided to increase their contribution to their investment portfolio since Victor is now age 59 and thinking about retiring in five years. For years, they have followed a moderate-risk investment philosophy and put their money in suitable stocks, bonds, and mutual funds. The value of their portfolio is now $420,000, and this is in addition to their paid-for rental property, which is worth $300,000. They plan to invest about $12,000 every year for the next five years. Why should Victor and Maria consider buying common stock as an investment with the additional money? Why or why not? Maria bought a stock with a market price of $50 and a beta value of 1.9, what would be the likely price of an $12,000 investment after one year if the general market for stocks rose 5 percent? Round your answer to the nearest dollar. Do not round intermediate calculations. 3.What would the same investment be worth if the general…