State of the Economy Probability HPR 18% 12% - 5°. Boom 30 50 Normal growth Recession 20 What is the expected standard deviation for KMP stock? Multiple Choice 6.91% 8.13% 779% 7.25% 8.85%
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- If Dmc006-1.jpg = $1.50, g (which is constant) = 5.6%, and Pmc006-2.jpg = $56, what is the stock’s expected capital gains yield for the coming year? Group of answer choices 6.44% 5.60% 6.33% 4.26% 6.78%Q17 The expected dividend of Sony Company for next year has the following probability distributions: 30% OMR 2.000 and 70% OMR 2.890. If the market price of a share is OMR 65.625, what is the required rate of return? a. 25% b. 2% c. 4% d. 8%15 [Question text] Based on the following information, what is the expected return for the following stock? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom 0.06 -6% Normal 0.74 7% Recession 0.20 18% Select one: A. 8.80 percent B. 8.23 percent C. 8.53 percent D. 8.42 percent
- wicb stock i trinsic value is 48.40, the required rate of return is 12.5 percent and the dividend growth is 10 percent what is wicb recent dividendIf a company has a current stock price of $45, an EPS of $3/share; EPS growth rate of 10% and the investors rate of return is 15%, calculate the cash cow price.0 a. $180 b. $190 c. $22 Od. $210 e. $20IGENEXTTarget "Forward Dividend & Yield" currently pays a dividend (see table below). Calculate thestock valuation based on the Constant Growth Formula. Do you agree with the valuation in comparison to where the stock is currently trading? Why or Why not? Stock Price 110.79 Previous Stock close 106.20 Forward dividene & Yield 3.97% Market Cap 51.141B Beta (5Y Monthly) 1.04 PE Ratio (TTM) 15.20 eps (ttm) 7.29
- A stock has an expected return of 10.23 percent. Based on the following information, what is the stock's return in a boom state of the economy? State of Economy Probability of Stateof Economy Rate of Return ifState Occurs Recession .24 − 9.2 % Normal .45 10.7 % Boom .31 ?The expected risk premium on a stock is equal to the expected return on the stock minus the: Group of answer choices inflation rate. expected market rate of return. standard deviation. risk-free rate. A stock just paid a dividend of P1.50. The expected rate of return is 10.1%, and the constant growth rate is 4.0%. What is the current stock price? Group of answer choices P23.11 P25.57 P24.31 P23.70Q9 to Q10 below is based on the following information.Current Stock Price (S0) 80Strike/Exercise Price (K) 75Time to Maturity (T) of 1 year 1Risk-free Rate (r) 0.04Volatility 40%N(d1) 0.6777N(d2) 0.5245N(d1) 0.3223N(d2) 0.4755 Q9. Based on the above information and the Black-Scholes-Merton model, which of thefollowing is the correct Delta () of the European Put option?(A) 0.6777 (positive)(B) 0.5245 (positive)(C) -0.6777 (negative)(D) -0.3223 (negative)Answer: _______________ Q10. Based on the above information and the Black-Scholes-Merton model, which ofthe following is closest to the correct no-arbitrage Put Option price?(A) 8.4852(B) 16.4259(C) 11.3392(D) -16.4259Answer: _______________
- Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 20 % Normal 0.55 9 % Weak 0.30 -5 % What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places.What is the standard deviation of the returns on a $60,000 portfolio which consists of stocks S and T? Investment in stock S is valued at $24,000. State of Economy Probability of State of Economy Return if State Occurs Stock S Stock T Boom 5% 11% 5% Normal 85% 8% 6% Recession 10% -5% 8%Q18 Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 8 percent. Safeco’s recent dividend was $0.88.What is the value of Safeco stock when the required return is 12 percent? (Round your answer to 2 decimal places.) VALUE OF STOCK