Q: 22 OLG stock has a beta of 0.98 and an expected return of 10.52 percent. The risk-free rate of…
A: The capital asset pricing model is used for pricing securities and calculating their expected…
Q: An application for an individual Disability Income policy may require all of he following…
A: Disability income policy is an insurance policy which protects the insured against loss of monthly…
Q: hich one of the following attributes is favorable for the convertible bond arbitrage? low…
A: The bonds can be converted into number of shares on expiration of bond due to which bonds have good…
Q: Finance Approximately how much would you need to invest today, to receive $280 in ten years, if you…
A: Future Value is $280 Time period is 10 years Interest rate is 10% To Find: Present Value
Q: 4.) FEU has been bought by an individual. It is to be paid 4% compounded semi-annually, eight times…
A: Future value of deposit include the amount deposited and also compounding interest accumulated over…
Q: DeCento's is analyzing two mutually exclusive machines to determine which one it s machine is…
A: The machine having lower annual cost would be better considering the rate of return required on…
Q: According to the theories, companies opt their capital structures to maximize the value of firm.…
A: Capital structure is referred to as the mixture of various sources of finance which are also called…
Q: what is the par value of the bond? P 6,130.08 P 5,816.44 P 5,750.45 P 6,209.11
A: Par value refers to price or value of a bond offered by the company at the time of issuance. It is…
Q: Today, you signed loan papers agreeing to borrow $4,954.85 at 9% compounded monthly. The loan…
A: When a loan is compounded it means that the loan reduces as per the reducing balance method. This…
Q: The Lewin Inc. has issued 60,000 bonds with an 8% coupon rate and a quoted price of 110; the bonds…
A: Given: Particulars Amount Face value(FV) $1,000 Years(NPER) 30 Quoted price 110% Coupon…
Q: Gold Insurance Company intends to offer a contract with a guaranteed annuity in units of $500,…
A: The term "annuity" refers to insurance policies sold by financial organisations with the goal of…
Q: prest at 3.46% compounded monthly. If he leaves the accumulated money in the savi have saved to buy…
A: Present value annuities would give the amount required to be deposited today considering the…
Q: Month 12 84 SE 86 37 39 40 Excess Returns over the risk free rate M 0.67 3.72 -1.56 2 -2.08 1.69…
A: Sharpe Ratio Formula : Excess return over the risk-free rate = return of portfolio - risk-free rate…
Q: An example of an ‘intermediate good’ would be: the petrol purchased by consumers for their…
A: Intermediate goods are goods that are used as a factor of production to create goods that can…
Q: what is financing enterneurship for starting the turban selling business
A: Financing entrepreneurship: Financing entrepreneurship refers to arranging or sourcing funds needed…
Q: You are planning on taking out a mortgage and would like to determine the cash value for a given…
A: Mortgage is referred as an agreement, which are between the borrower and the lender that gives the…
Q: A 20 year, at 10% semiannual coupon bond, with a par value of $1000 sells for $1200 (assume that the…
A: Current yield With annual coupon payment and current market price, the bond's current yield is…
Q: Cameron is saving for his retirement 22 years from now by setting up a savings plan. He has set up a…
A: Time period till retirement is 22 years Quarterly saving of $97.00 Time period of saving is 12 years…
Q: During the year Honda Motor Company shares went from ¥9,010 to ¥11,210, while paying a dividend of…
A: The stock market is a collection of exchanges and other locations where you can purchase and sell…
Q: Seven years ago, you deposited $1000 into an account earning r = 10% APR compounded annually. How…
A: Future value: Future worth (FV) is the sum to which an ongoing venture will develop after some time…
Q: QID 320. Due to brisk demand for urchase of a new cassette-making production line. The production…
A: We will have to use the concept of capital budgeting here. Capital budgeting uses different tools…
Q: he ‘underground economy’ can be described as: production of infrastructure that spurs growth…
A: In finance underground economy is an important concept. The term underground means that something is…
Q: Which of he following stalements BEST describes the primary difference between a Health Maintenance…
A: A Health Maintenance Organization is a form of health insurance where the medical care is insured if…
Q: 0 Shares of ABT stock offer an expected total return of 14.6 percent. What is the dividend yield if…
A: Answer - Total Return Estimated - Formula for Total Return Estimated is given below : Yield +…
Q: Rebecca signed a $6,000, 120-day, 14% exact simple interest note on May 6. She made partial payments…
A: We know that Interest can be calculated using the below mention formula using Simple interest…
Q: A firm sets aside $26000 today in an account earning 8% APR compounded annually. The purpose of the…
A: Amount set aside today(Present Value) is $26000 Interest rate(rate) is 8% compounded annually…
Q: Select one down payment present value of penodic payments b down payment number of payments times…
A: When you buy the property than you have to pay some money as down payment and remaining amount as…
Q: enny purchase a house for a selling price of 310,000 and need to make a 15% down payment. The…
A: Loans are paid by the monthly payments these are equal monthly payments that carry the payment for…
Q: Sonny who invested ₱45,800 had ₱82,420 returned to him 4 years and 4 months later. At what interest…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: Medallion Cooling Systems, has total assets of $10,900,000, EBIT of $1,990,000, and preferred…
A: The earnings per share ratio are used to measure a company's profitability. It shows the amount of…
Q: what is the interpretation of full-time equivalents (FTEs) when calculating number of total…
A: FTE is a measurement unit which is used to compare different workloads of employees i.e Part time…
Q: 3. A loan of $ 1060 has been made at 6.5% for 3 months. Find the loan's future value.
A: As per Bartleby honor code, when a specific question is asked, the expert is required only to solve…
Q: Describe the payback period approach to capital budgeting. Explain 1 advantage and 1 disadvantage of…
A: Pay back period is the length of time required to recover the cost of Investment. It is calculated…
Q: Johan wants to buy a car on hire purchase for N$49000 at the rate of 12% p.a. repayable using…
A: Payment of loan installments are based on the concept of compounding and time value of money. Here…
Q: 19 Jeanette's Medical Supply has a beta of 1.47 and its RWACC is 11.8 percent. The market risk…
A: Given: Particulars Beta 1.47 Market risk premium 7.40% Risk free rate 3.60% Cash flow…
Q: If 10,000php is invested in account paying 6% compounded quarterly; A. How much will be in the…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: How does regret avoidance contribute to the disposition effect? What kind of steps do…
A: In the world of investing behavioral science plays a very important role. In fact behavioral…
Q: What is Balanace of Payment
A: Balance of Payment is a statement that records all the monetary transactions made between residents…
Q: Carefully explain the cross-sectional test of the CAPM.
A: The Capital Asset Pricing Model (CAPM) is a mathematical model that describes the relationship…
Q: An investment is now worth 46,200. You bought this investment 15 years ago for $5,000. What return…
A: investment worth now $46,200 Investment value 15 years ago $5,000 A = P(1+R)^TWhere A…
Q: A scooter manufacturer has fixed costs of $278,200 per month. The scooters have a short-run average…
A: Degree of operating leverage is one of the measure which shows how much operating income will change…
Q: Suppose that there are many stocks in the security market and that the characteristics of stocks A…
A: Portfolio management in stocks is used to find out the group of investments that conform with the…
Q: What is the holding period return over the 10 weeks for the S&P 500? 3+ decimals What is the…
A: Return means earn additional over the invested amount during the period. Holding period return…
Q: An investor owns $6,000 of Adobe Systems stock, $5,000 of Dow Chemical, and $5,000 of Office Depot.…
A: Weights are the proportion of amount invsted in each investment out of total amount invested in…
Q: Suppose withdrawals of 10,000 every year starting at time 8 will be made and will go on forever. How…
A: Given: Amount = $10,000 Interest rate =10%
Q: are and contrast the roles and functions of capital markets and
A: There are two types of market for raising money and trading of securities in the market capital…
Q: 14 NuPress Valet has a proposed investment with an initial cost of $62 million and cash flows of…
A: The Weighted Average Cost of Capital or composite or over-all cost of capital of a firm is the…
Q: A P100,000, 10% bond pays dividend every quarter for 8 years. The bond is priced at par and is…
A: The par value of bond us P100,000 Number of years to maturity 8 years
Q: Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed o the…
A: Journal entries is referred as an act of the keeping/making records for all the transaction of the…
Q: The following data on the Bond Record Company are available: Earnings available for common…
A: Data given: Earnings available for common stockholders $700,000 Number of shares of…
(Calculating rates of return) On December
10, 2007, the common stock of Google Inc. (GOOG) was trading for $
718.42. One year later the shares sold for only $
308.82. Google has never paid a common stock dividend. What
10, 2007?
Question content area bottom
Part 1
The rate of return you would have earned is
enter your response here
%. (Round to two decimal places.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Research online to find a company that bought back shares of its own stock (treasury stock) within the last 6–12 months. Why did it repurchase the shares? What happened to the companys stock price immediately after the repurchase and in the months since then? Is there any reason to think the repurchase impacted the price?(Calculating rates of return) On December 17, 2007, the common stock of Google Inc. (GOOG) was trading for $ 669.23. One year later the shares sold for only $ 315.24. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 17, 2007? Question content area bottom Part 1 The rate of return you would have earned is enter your response here %. (Round to two decimal places.)A share of Lash Inc.'s common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5%, and if investors' required rate of return is 8.0%, what is the stock price? (Round your answer to 2 decimal places.) Please work out the problem do not use excel. Thank You.
- Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors’ required rate of return in 10 percent, what is the market value of shares? If the required return declines 6 percent, what is the change in the price of stock? Could you not use excel as im not familair with it yet. Just simple equations pleaseA stock is bought for $23.25 and sold for $28.69 a year later, immediately after it has paid a dividend of $4.18. What is the capital gain rate for this transaction? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign. A stock is bought for $29.45 and sold for $35.96 a year later, immediately after it has paid a dividend of $3.97. What is the dividend yield for this transaction? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign. You own a portfolio that has $3,764 invested in Stock A and $7,514 invested in Stock B. If the expected returns on these stocks are 9.33% and 11.67%, respectively, what is the expected return on the portfolio? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign.Jenny Banks is interested in buying the stock of Fervan, Inc., which is increasing its dividends at a constant rate of 9.0 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 17.0 percent. What is the current value of this stock? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25.) What should be the price of the stock in year 5? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25.)
- 1. Lahhey Publishing wishes to estimate the value of its outstanding preferred stock. The preferred stock has a RM50 par value and pays an annual dividend of RM7.50 per share and currently earning an 8% annual rate of return. A. Calculate the market value of the outstanding preferred stock. B. If an investor purchases the preferred stock at the value calculated in part (a), how much does she gain or lose per share if she sells the stock when the required return on preferred stock has fallen to 6%. Explain.Pharsalus Inc. just paid a dividend (i.e., ) of $ 3.61 per share. This dividend is expected to grow at a rate of 7.2 percent per year forever. The appropriate discount rate for Pharsalus's stock is 14.3 percent. What is the price of the stock? Record your answer as a dollar amount rounded to 2 decimal places , but do not include a dollar sign or any commas in your answer . For example , record $ 18,124.24985 as 18124.25 .Do not use Excel or Matrix You have to show your work 5. Zenith Co. is expected to pay $4 dividend this year, $6 dividend next year, $9 dividend the following year. After that the dividends are expected to grow at a constant rate of 3% per year. The cost of equity of Zenith is 23%. Is the value of each share of Zenith = 4 / (0.23 – 0.03)? Explain. What is the current price of the stock?
- Nynet, Inc., paid a dividend of $3.92 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 14.5 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.25.) Current value $The common stock of Placo Enterprises had a market price of $ 9.11 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of $ 1.16 and closed at a price of $ 10.42. What rate of return did you earn on your investment in Placo's stock? Question content area bottom Part 1 The rate of return you earned on your investment in Placo's stock is enter your response here %. (Round to two decimal places.)You invest $1,500 into a "hot stock" through the Robin Hood app. The stock does well in the first quarter and in the second quarter. At the end of the second quarter, the stock's value is $2,250 and you buy another $1,000 worth of shares. At the end of the year, your shares are now worth $3,300. What is your money-weighted return? State your answer as a raw number, not in decimal form (i.e. 13.21 not 0.1321) with two decimal places.