Which of the Stocks in Elaine's portfolio are most likely growth stocks and why?Stock D because it has the highest P/E and does not have a dividendO Stock E because it has the highest mean return and does not have adividendO Stock A because it has the greatest returnO Stock F because it has the highest beta and standard deviation and does not have a dividend. Shares Stock1,0005752005001,0001,250Stock AStock BStock CStock DStock EStock FXBetaσ6%0.6511%11%0.759%7% 0.65 10%3% 0.708%0.9515%18%1.1025%22%StocksR²75%65%30%45%70%20%P/ERatio13.014.015.125.214.411.1DividendYield3.0%3.7%3.7%0.0%0.0%0.0%Basis$30,000$45,000$20,000$11,000$20,000$23,000Total value of stocksFair MarketValue$ 38,000$ 46,000$17,000$ 8,500$ 18,000$ 25,000$152,500

Growth stock are those stocks which have very high growth potential in the future and are valued…

Which of the Stocks in Elaine's portfolio are most likely growth stocks and why? O Stock D because it has the highest P/E and does not have a dividend O Stock E because it has the highest mean return and does not have adividend O Stock A because it has the greatest return O Stock F because it has the highest beta and standard deviation and does not have a dividen

Which of the Stocks in Elaine's portfolio are most likely growth stocks and why? O Stock D because it has the highest P/E and does not have a dividend O Stock E because it has the highest mean return and does not have adividend O Stock A because it has the greatest return O Stock F because it has the highest beta and standard deviation and does not have a dividen

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A B C O 144.67 O 141.67 O $133.81 Stock O 131.81 Shares 1,000 5,000 3,000 Based on Table 3 the three securities comprise an index. Calculate the market value weighted index for time period t+1? Price_t $45 $24 $15 Price_t+1 $64 $26 $29
P9-8 Cost of preferred stock Determine the cost for each of the following preferred stocks. Preferred stock Par value Sale price Flotation cost Annual dividend $ 25 $ 28 $3.00 55 63 $5.00 8% 20 28 $2.00 S1.00 12% 5% of par $2.50 100 112 7% 35 43
PROVIDE COMPUTATIONS!!! 10. What is the book value of the preference shares on December 31, 2018?a. P105 c. P100b. P110 d. P11511. What is the book value of the ordinary shares on December31 2018?a. P13.40 c. P14.15b. P14.52 d. P13.78
ABC Analysis Stock Number Annual $ Volume Percent of Annual $ Volume J24 12,500 46.2 R26 9,000 33.3 L02 3,200 11.8 M12 1,550 5.8 P33 620 2.3 T72 65 0.2 S67 53 0.2 Q47 32 0.1 V20 30 0.1 Σ = 100.0
The following table shows stock prices and volumes for a few hypothetical companies. Stock Yld % PE Vol 10Os Hi Lo Close Net Chg A 2.5 35 13,758 44.3 43.5 43.97 -0.63 В 2.2 31 30,428 31.1 29.7 40 0.17 C 1.2 16 705 24.2 23.1 23.95 -0.53 D 2.1 40 5418 63.4 61.7 55.24 0.72 Refer to Table 8-1. What were company D's earnings per share? а. $38 b. $1.38 C. $1.64 d. $0.61
47. Use the following information relating to a float-adjusted market-capitalization-weighted equity index. Security Shares Outstanding % of Shares in the Market Float Price End 2020 Price End 2021 Dividend per Share W 20,000 41% $61.00 $38.00 $0.85 X 15,000 37% $54.00 $51.00 $2.15 Y 20,000 53% $34.00 $35.00 $1.12 Z 9000 90% $59.00 Assume that all dividend payments are made at the end of the year. The weight of Security Y in the index on December 31, 2020 is closest to: a. 22.00% b. 30.82% c. 31.05% d. 32.22% e. 37.02%
4 t of estion Determine the market value of a Digicel Stock if Do = 3.00, Ks = 13%, G = 6%. Select one: O a. O b. O c. O d. $45.43 $30.29 $53.00 $3.18
Ch 08: Assignment - Risk and Rates of Return Elle nolas a $5,000 portrollo that consists or rOur stocKs. Her investment in eacn stock, as well as each stock's beta, is listed in the following table: Standard Deviation Stock Investment Beta Perpetualcold Refrigeration Co. (PRC) $1,750 0.90 12.00% Zaxatti Enterprises (ZE) 1.70 $1,000 11.00% Western Gas & Electric Co. (WGC) $750 1.10 18.00% Makissi Corp. (MC) $1,500 0.40 25.50% Suppose all stocks in the portfolio were equally weighted Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the Which of these stocks would have the least amount of least market risk to the portfolio? standalone risk? Makissi Corp. Perpetualcold Refrigeration Co. Makissi Corp. Western Gas & Electric Co. Zaxatti Enterprises Zaxatti Enterprises Western Gas & Electric Co O Perpetualcold Refrigeration Co. If the risk-free rate is 7% and the market risk premium is 9%, what is Elle's portfolio's beta and required return?…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Υ7 20Y6 20Υ5 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders' equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Υ4-20Υ8 Return on total assets 28% Return on stockholders' equity 18% Times interest earned 2.7 Ratio of liabilities to stockholders' equity 0.4 Required: 1.…
Use Exhibit 20-5, Corporate Bond Quotation Table, to find the information for the corporate bond. DUKE ENERGY FLA LLC bid price in dollars $
Day 5/4/2020 5/5/2020 5/6/2020 5/7/2020 5/8/2020 LMT HPR 345.82 321.56 -7.015% 337.21 4.867% 341.11 1.157% 355.32 4.166% S/9/2020 362.31 1.967% 12. What is WEC stock Total Geometric Return based on the table above? A. 1.028% В. 3.249% C. 4.768% D. 5.141% E. 10.476%
13. The following data were available for the portfolio of investment in stocks during 20X2: Cost Fair value (12/31/20X1) Fair Value (12/31/20X2) ABC 100,000 80,000 110,000 LMN 80,000 30,000 40,000 QRS 60,000 70,000 60,000 All the shares of ABC were sold on January 20X3 for P41,200 and incurred P1,200 transaction costs. What is the amount of gain (loss) on Dec 31, 20X1, Dec 31, 20X2 and Jan 20X3 respectively? (60,000); 30,000 ; (70,000) (60,000); (30,000); (20,000) (60,000); 30,000; (60,000) (60,000); 30,000; 30,000

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