What is your expected annual rate of return for this portfolio: stock A 1000 shares at $22/share expected return 10%, stock B 750 shares at $11.50/share expected return 8.5%, Bond PV = $25,000 expected return 4%, Money Market balance $10,000 expected return 1%?
Q: d) You want to retire in 45 years with $1 million in the bank. You think you can get an average of 5...
A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...
Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan a...
A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 = 0.545...
Q: Question 1 A 5-year project will require an investment of $100 million. This comprises of plant and...
A: 1) To Calculate the Cost of Equity for this project Cost of Equity = Risk-Free Rate of Return + Beta...
Q: What is the YTM of this corporate bond - 20-year bond issued 5 years ago, interest rate of 4%, you j...
A: Par value = $1000 Coupon rate = 4% Coupon amount = 1000*0.04 = $40 Current price = $1062.50 Years to...
Q: A loan for RM6,500 with a simple interest rate of 18% was made on June 15 and due on September 15. ...
A: Loan amount (P) = RM6500 Interest rate (r) = 18% Period from June 15 to September 15 (d) = 92 days
Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent. Wha...
A: Debt financing involves borrowing funds and returning the principal amount in addition with interest...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Capital Budgeting: It is the planning process which is undertaken by business to analyse potentia...
Q: Nector is a company that sells bee keeping supplies and connects beekeepers all over the world to se...
A: Solution:- Taxable income means the income which is subject to tax, after deducting all the deductib...
Q: A car lease of $12613 is to be repaid by making payments at the beginning of each month for 3 years....
A: Car Lease Amount = $12613 Time Period = 3 Years Interest Rate = 3%
Q: Explain the importance of a business report.
A: A business report is a report or a document which is essentially includes an array of data and analy...
Q: (1) A 5-year auto loan for $20,000 has monthly payments at an 8% nominal annual rate. If the borrowe...
A: Annual percentage rate (APR) refers to the annual interest rate charged to borrowers or investors. A...
Q: 1. If Ysabelle borrowed money from Nina with a simple interest rate of 12%, determine the present wo...
A: The simple interest is the interest without the compounding that means there is no interest on the i...
Q: A car is available for Rs. 402200 cash or Rs. 150000 cash down payment and 3 equal half yearly insta...
A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at pre...
Q: Let’s see after your graduation, you will be offered an engineering job with a large company that ha...
A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...
Q: transfer technique for the partners t
A: A partnership is a type of business in which two or more people share their ownership for managing t...
Q: How much should be placed in this account at the end of each week if the annual interest rate is 3.8...
A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...
Q: The payback method helps firms establish and identify a maximum acceptable payback period that helps...
A: Payback period is the number of years required to recover the initial investment in the project. Ans...
Q: 3. Find the annual percentage rate (APR), a.k.a. annual equivalent rate (AER), of interest of a savi...
A: Since you have posted multiple questions we shall be solving the first one for you. In case you wish...
Q: 4. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay a...
A: The easiest and simple method of calculating interest is simple interest. An interest rate is consid...
Q: Twelve months ago, you purchased the shares of a no-load mutual fund for $22.25 per share. The fund ...
A: Return = Dividend + Capital cain +(Closing price - Opening price)Opening price Given, Purchase pric...
Q: Suppose you obtain a 20-year mortgage loan of $193,000 at an annual interest rate of 8.4%. The annua...
A: Given Information in the question:- PV (present value) = $193,000 Rate = 8.4% Time (N) = 20 year Ann...
Q: Problem 16-5 MM and Stock Value Foundation Corporation is comparing two different capital structures...
A: Capital structures includes the equity debt mix which is to be used by entities in financing theory ...
Q: Identify methods for using and analysing working capital cycles ( max. 300 words
A: Step 1 It takes time for the Working Capital Cycle (WCC) to turn all current assets (such as shares ...
Q: A project requires an initial outlay of $80000 and produces a return of $20000 at the end of year 1,...
A: Solution:- Internal Rate of Return (IRR) means the rate at return the project is yielding. At IRR, N...
Q: Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share. ...
A: Shares Outstanding = 2,500,000 Share Price = RM45 per share
Q: us ways to manage the funds of a business ente
A: Step 1 It is a way of planning, organizing, managing, and analyzing financial resources to meet the ...
Q: According to the promissory note below, answer the following questions (Refer to the pic attached) ...
A: Maker is the person who is supposed to pay the amount and Payee is the person to whom amount is to b...
Q: Undeclared dividends (in arrears) to cumulative preferred stockholders must be filed to. in the note...
A: Solution:- As we know, the preferred shares are paid dividend prior to common shares. There is a typ...
Q: Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded semi-...
A: Answer a:- The future value of an investment is calculated using the following formula:- Future valu...
Q: Jazz town, Inc., is considering a new product launch. The firm expects to have an annual operating c...
A: In the given problem , salvage value given is $ 26.1 million . We are required to find level of expe...
Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at...
A: Year Annual payment 1 to 7 50000 8 to 12 85000 13 to 18 200000 Interest rate = 17%
Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposit oc...
A: The concept of the time value of money states that the same amount of money is worth more today than...
Q: Which of the following is part of the journal entry to backflushes costs to inventory accounts?
A: RIP= units * cost per unit + RM
Q: In order to pay a baseball uniforms , a school takes out a simple interest loan forPhp20,000 for 7 m...
A: Simple Interest: It is the easiest and simplest way to compute the interest charge on a loan. It is...
Q: An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purpos...
A: To calculate the BV at the end of four years, we must first calculate the accumulated depreciation f...
Q: Consider the following four debt securities, which are identical in every characteristic except as n...
A: Here, W is a corporate bond rated AAAX is a corporate bond rate BBBY is a corporate bond rated AAA ...
Q: As the Finance Manager of Wynter's Bedding Manafacturing (WBM), you need to detemine the discount ra...
A: To meet the financial needs of the business, companies raise the funds from various sources. Company...
Q: It is April, and Hans Anderson is planting his barley crop near Plunkett, Saskatchewan. He is concer...
A: In the given question we are given with the particulars about a barley crop of Hans Anderson. Given...
Q: - Consider a firm that has EPS of $5 at the end of the first year, a dividend-payout ratio of 30%, a...
A: Discount rate is 16% Return on retained earning is 20% EPS is $5 Dividend Payout ratio is 30% To F...
Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed a...
A: OCF is the operating cashflow of a company. It is the cash generated from normal business operations...
Q: A mechanical engineer designs and sells equipment that automates manual labor processes. He is offer...
A: The defender is the old equipment or product currently used by the company and might use for more se...
Q: A corporation has a taxable income of $7,356,401. At this income level, the federal income rate is ...
A: Given that: Total Income=$7,356,401 Local Tax= 13% State Tax= 21% federal income rate =46%
Q: The distribution of a dividend that represents a partial return of the original investment made by t...
A: Dividends can be paid in a number of different forms, including cash, stocks, and other assets. A di...
Q: Mill A Mill B Initial Cost $7,800 $14,400 $2,700 $1,200 $540 Salvage Value Annual Operating Cost $17...
A: it is given that : A: Initial cost - $7800 Salvage value- 0 Annual cost – 1745+960= 2705 Time – 12 y...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Net present value is the sum of the present values of net of all future cash outflows and inflows di...
Q: Find the monthly house payments nessary to amortize the following loan. Find total payments and tota...
A: Loan amount (PV) = 198000 Interest rate = 6.94% Monthly interest rate (i) = 6.94%/12 = 0.57833333333...
Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent. Wha...
A: Loan amount (PV) = $30000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 10 Ye...
Q: Find the monthly house payments necessary to amortize the following loan. What are the total payment...
A: Loan amount (PV) = 196000 Interest rate = 6.89% Monthly interest rate (r) = 6.89%/12 = 0.57416666666...
Q: b. A farmer is considering replacing a labor-intensive machine system with a more capital- intensive...
A: The initial investment and incremental cash flows: The initial investment in a project involves all ...
Q: complete the following using ordinary interest. (use days in a year table.) (don not round intermedi...
A: Principal (P) = $585 Interest rate (r) = 9% Period (d) = 193 days
What is your expected annual
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate, g, throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?Crisp Cookware’s common stock is expected to pay a dividend of $3 a share at the end of this year (D1 = $3.00); its beta is 0.8. The risk-free rate is 5.2%, and the market risk premium is 6%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $40 a share. Assuming the market is in equilibrium, what does the market believe will be the stock’s price at the end of 3 years (i.e., what is )?A portfolio consists of $15,000 in Stock M and $22,900 invested in Stock N. The expected return on these stocks is 8.80 percent and 12.40 percent, respectively. What is the expected return on the portfolio?
- You have a portfolio worth $78,500 that has an expected return of 11.9 percent. The portfolio has $17,500 invested in Stock O, $25,300 invested in Stock P, with the remainder in Stock Q. The expected return on Stock O is 18.7 percent and the expected return on Stock P is 11.9 percent. What is the expected return on Stock Q?You own a portfolio consisting of 100 shares of Stock A (Beta A = 1), 150 shares of Stock B (Beta B = 1.2), and $3,000 invested in US Treasury Bills. US Treasury Bill rate is 2%. Estimate portfolio beta and portfolio expected return. Stock #Shares Price per share Expected Return Stock A 100 shares $20 17% Stock B 150 shares $10 20% a) Considering all the givens above, estimate your portfolio beta and expected return. b) Considering all the givens above, what is the expected return on a Stock C with beta=0.7. Only typed answer and give fast answerThe Stocks A, B and C has a weight of 35%, 45%, and 30%, respectively, with a total portfolio value of 200,000.Stock A – 70,000 invested stocks, 10% expected returnStock B – 90,000 invested stocks, 12% expected returnStock C – 60,000 invested stocks, 8% expected return What is the expected return of portfolio? a. 12.3% b. 10.3% c. 11.3% d. 13.3%
- If Expected return of stock A is 12%, Expected return of stock B is 15% and Expected return of stock C is 8%. 30 percent of the portfolio is invested in A, 50 percent is invested in B and 20 percent is invested in C, the expected return of the portfolio is a. 11.2 percent b. 12.7 percent c. 9.2 percent d. 7.5 percentThe composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 280,000 $ 35 B 380,000 40 C 480,000 15 D 680,000 20 If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 170,000 shares of stock E at $50 per share and 170,000 shares of stock F at $30 per share, what is the portfolio turnover rate? (Round your answer to 2 decimal places.)Of the $10,000 invested in a two-stock portfolio, 30 percent is invested in Stock A and 70 percent is invested in Stock B. If Stock A has a beta equal to 2.0 and the beta of the portfolio is 0.95, what is the beta of Stock B?please step by step and formula
- What is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 35% $500,000 BBB 29% $1,300,000 CCC 18% $1,200,000 DDD 7% $1,500,000 O.17.13% O.19.40% O.21.01% O.22.21% O.23.88%Donald Gilmore has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?You own a portfolio that has $16,000 invested in Stock A and $17,000 invested in Stock B. The expected returns on these stocks are 14.9 percent and 9.7 percent, respectively. What is the expected return on the portfolio?