On 16th may 2021 you purchased some shares at a price of $78 per dollar a share and a year later you sold them for $92 a share. At the end of the year of purchase, you received a cash dividend of $2.5 a share. compute the holding period return on the share. show all the workings to justify your answer.

Q: 11. Suppose that a young couple has just had their first baby and they wish to ensure that enough…

A: In order to find the cost of the tuition after a certain period we are required to calculate the…

Q: Show your work for all answers! 1. Today Zack purchased an investment grade gold coin for $50,000.…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Data given: Cash flow  per year = $5 million Set up cost = $8 million Discount rate =8% Life of…

Q: FedEx Corporation (FDX) has a current share price of $157.83 and is expected to have earnings per…

A: Price of FDX stock = $157.83 EPS of FDX stock = $12.58   PE ratio of FDX stock = Price of FDX stock…

Q: Capital Asset Pricing Model  a) describe the model b) what are the assumptions in the model c)…

A: a) CAPM Model CAPM model ideally portrays the relationship between systematic risk and the expected…

Q: Finance A company says "yes" to a number of orders with a coverage ratio of 30%. They currently have…

A: Given,   The Ratio for coverage of the organization would be = 30 %. For this case, The…

Q: Suppose you want deposit $200 each month into an account earning 3.5% APR compounded monthly. a)…

A: Annuity is a fixed periodic payment made over a period of time, leading to the accrual of a definite…

Q: here is a situation where investors in the US are looking to Japan as a place where they should…

A: Value of a currency is determined by aggregate demand and supply situation for that currency. Demand…

Q: How do you take the present value of a stream of cash flows. How does it work for annual payments,…

A: Present value of cashflows is the value of money that is to be received in future.

Q: Explain whether it is better for an investor to buy a discount bond and pay a price below its face…

A: A bond is a type of loan. The investor issues bonds to the borrower in which he uses the loan for…

Q: Which of the following functions of the Commercial Bank's primary functions is influence by the…

A: Solution:- Reserve Requirement Ratio (RRR)  means the minimum amount of deposit a bank has to keep…

Q: A project requires a current expenditure of $350 and expects to generate $100 cash inflows at the…

A: We need to examine the NPV profile and decide whether to accept the project and under what…

Q: An investor buys a land for PhP 1M and constructs a three-door apartment for students worth PhP 5M.…

A: Internal rate of return is a capital budgeting technique that is used by companies to decide the…

Q: 3000.00 120.00 706.47 706.47 706.47 706.47 2293.53 C 120.00 A B 120.00 D 2205.32 794.68 0.00 120.00…

A: Sinking fund is amount being deposited each period to achieve the future value required in the…

Q: Consider three securities that will pay risk-free cash flows over the next three years and that have…

A: The cash flows of Security B4 can be replicated by buying 5 units of Security B1 and 2 units of…

Q: What is the yield to maturity?

A: As no coupon payment is mentioned, this bond is assumed to be a zero coupon bond. A zero coupon bond…

Q: Wyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend…

A: Dividend after 2 years (D2) = $0.49 Growth rate (g) = 4.2% Required rate of return (r) = 11.2%

Q: Too much money in an economy with too little goods and services creates:

A: High amount of money in the market with little goods or services will create an imbalance in the…

Q: Debt ratio of GLOBE * STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT OF 3 COMPANIES AS…

A: Ratio is a tool which is used to measure the growth and performance of the firm by establishing the…

Q: Find the future value of an annuity due for payments of $450 for 12 years with a rate of 0.24%…

A: Solution:- When an equal amount is paid each period at beginning of each period, it is called…

Q: Interest coverage ratio of JFC *

A: In the given question, we have to calculate the Interest Coverage ratio of the JFC.

Q: A family has a $134,345, 25-year mortgage at 5.1% compounded monthly. (A) Find the monthly payment…

A: Mortgage is a loan to buy a property or asset. The mortgage repayment in equal amount is an annuity…

Q: Snickerdoodle Co. has EBIT of $50,000 and total financing (interest) cost of $14,000.…

A: Solution:- Degree of financial leverage (DFL) measures the ratio of Earnings before interest and tax…

Q: A stock has an expected return of 12.25 percent.  The beta of the stock is 1.15 and the risk-free…

A: The market risk premium can be calculated with the help of CAPM equation

Q: Assume you have an optimal risky portfolio with an expected return of 17% and a standard deviation…

A: Given: Expected return = 17% Standard deviation = 27% Risk free rate = 5% Risk aversion = 2

Q: value of delta of a 3 month European put option on the stock

A: European put option refers to the option that allows the holder to sell the under security at the…

Q: Briefly explain three risk exposures that an analyst should report as part of an enterprise risk…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Current Liabilibes Cash 61.2 58.5 Accounts payable Notes payable / 396 short-term debt Current…

A: Solution: We know, Net working capital means the net current assets over the current liabilities of…

Q: Two investments have the following pattern of expected retuns: Year 1 $5,100 Year 2 $10,100…

A: BTIRR is the before tax internal rate of return of the cash flows. It is the rate at which the net…

Q: b) The new shares which are issued in a rights issue are offered to the existing shareholders at…

A: Right Shares are those shares which are issued to the existing shareholder of the company instead of…

Q: Which of the following are example of Economies of Scale in residential housing markets? A: Post…

A: Economies of scale can be defined as the stage where the cost of production gets reduced due to the…

Q: If Project A and Project B are independent, which project should be undertaken? PLEASE ANSWER THE…

A: Independent projects are those available set of investment alternatives who are not related to each…

Q: The following are the total sales of Top Class Ltd for the past three months of 2021 Month April May…

A: Given, The sales from the month April to September The cash sales are 40% of total sales

Q: What are advantages and disadvantages of using derivatives? Discuss. Provide examples.

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: You are faced with making a decision on a large capital investment proposal. The capital investment…

A: IRR is the rate at which Present value of cash Inflows is equal to Present Value of cash Outflows.…

Q: nks offer overdraft facilities and term loans, among other services, to their corporate clien plain…

A: Companies provide the facilities to customers according to the need and requirements and also cost…

Q: Calculate the value of a 6 year 2% coupon bond with semiannual payments, 1000 par.  Expected return…

A: The present value of the bond or the current value of the bond is the market price of the bond. It…

Q: NPV Total and Differential Analysis of Replacement Decision Assume Mitsubishi Chemical is evaluating…

A: Evaluation of the alternatives of keeping the old compressor and purchasing the new compressor.…

Q: A measure of the overall price level paid for various goods and services by individuals: O a. Gross…

A: Solution:- Gross Domestic Product (GDP) means the sum total of prices of goods and services paid by…

Q: The difference between the forward rate and the expected future spot rate is called:

A: The forward rate is a price at which the transaction or settlement will take place in the future. It…

Q: You are a treasure analyst for your bank. One of your large corporate customers is interested in a…

A: As per provided :  3 Months DOLLAR Deposit Rate 4.50% p.a. 6 Months DOLLAR Deposit Rate 5.00% p.a.

Q: m for a corporation has decided to move forward with a project that will cost $82 million and now…

A: Weighted Average Cost of Capital = Cost of equity * Weight of equity +Cost of debt * Weight of debt.

Q: What is the expected return on a two asset portfolio and what are its variance and standard…

A: Two Asset portfolio: The portfolio that has 2 assets is called as two asset portfolio.

Q: Explain whether it is better for an investor to buy a discount bond and pay a price below its face…

A: Bond Issued at premium  If coupon rate is higher than the prevailing interest rates.  , it is called…

Q: Oswego Plumbing Works (ticker: OPW) just announced that it will cut next year's dividend, D1, from…

A: Given, Share price = 24.5 Dividend = 2.25 per share with 4% growth As per Gordon Growth Model,…

Q: just sold your house for $1,000,000 in cash. Your mortgage was originally a​ 30-year mortgage with…

A: Mortgages are paid by equal monthly payments and these payments carry the payment of principal…

Q: Find the amount of $1000 invested for 10 years if the force of interest is 5%

A: Invested amount (P) = $1000 Period (t) = 10 Years Interest rate (r) = 5%

Q: What is the market risk premium (rM - rRF)?

A: The market risk premium can be found using the CAPM Model As per CAPM Model, expected return = Risk…

Q: You invested in the​ no-load Best Mutual Fund one year ago by purchasing 900 shares of the fund at…

A: Purchase price (NAV0) = $19.44 Dividend (D) = $1.88 Capital gain (C) = $2.12 NAV at the end of year…

Q: Audi is selling at 30 per share. The most recent annual dividend paid was 0.5. Using the Gordon…

A: The expected dividend growth rate can be calculated as per the dividend growth rate.