Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 11, Problem 6FPE
Summary Introduction
To determine: The given data on Company C.
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The following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. Company Shares Beginning of Year Price Dividend Per Share End of Year Price US Bank 300 $ 44.60 $ 2.17 $ 44.53 PepsiCo 200 60.18 1.38 63.65 JDS Uniphase 500 19.98 17.76 Duke Energy 200 28.00 1.37 33.76 What is your portfolio dollar return and percentage return?
Go to Yahoo.com’s financial website and enter Apple, Inc.’s stock symbol, AAPL. Answer the following questions concerning Apple, Inc.
At what price did Apple’s stock last trade?
What is the 52-week range of Apple’s stock?
When was the last time Apple’s stock hit a 52-week high?
What is the annual dividend of Apple’s stock?
How many current broker recommendations are strong buy, buy, hold, sell, or strong sell?
What is the average of the broker recommendations?
What is the price-earnings ratio?
The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year.
Company
Shares
Beginning of Year Price
Dividend Per Share
End of Year Price
Johnson Controls
750
$
74.91
$
1.57
$
86.92
Medtronic
650
59.57
0.81
55.51
Direct TV
900
26.94
26.39
Qualcomm
600
45.08
0.59
40.92
What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.)
Portfolio Return
Dollar return
Percentage return
%
Chapter 11 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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- The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.arrow_forwardThe following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. Company Shares Beginning ofYear Price Dividend Per Share End of Year Price Johnson Controls 550 $73.11 $1.21 $86.02 Medtronic 400 57.77 0.45 53.71 Direct TV 700 25.14 24.59 Qualcomm 100 43.28 0.41 39.12 What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.) Portfolio Return Dollar return: ____.__ Percentage return: _____.__%arrow_forwardUsing Finance.Yahoo.com, draw a graph of your firm’s stock price movement in the past three years. Has the stock appreciated or depreciated? What is the stock’s highest and lowest price (adjusted for any stock splits) during the past three years? Does your stock pay dividends? If so, how has it changed during that period? I would like to use UnitedHealth Care Group as the company.arrow_forward
- The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. The risk-free rate on long-term Treasury bonds is 8.04%. Assume that the market risk premium is 6%. What is the expected return on the market? Now use the SML equation to calculate the two companies' required returns.arrow_forwardThe S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 927. If the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? Question content area bottom Part 1 The rate of return earned on the S&P 500 is enter your response here %. (Round to two decimal places.) Part 2 What is your assessment of the relative riskiness of investing in a single stock, such as Google, compared to investing in the S&P index? (Select the best choice…arrow_forwardUsing the data shown in the table below that contains historical monthly prices and dividends (paid at the end of themonth) for Ford Motor Company stock (Ticker: F) from August 1994 to August 1998, compute the: a. Average monthly return over this period is --%. (Round to two decimal places.) b. Monthly volatility (or standard deviation) over this period. (Round to two decimal places.)c. compute 95% confidence interval of the estimate of the average monthly return. Date Stock Price Dividend Return 1+RtAug-94 $29.250 $0.000 Sep-94 $27.750 $0.000 -5.13% 0.949Oct-94 $29.500 $0.260 7.24% 1.072Nov-94 $27.125 $0.000 -8.05% 0.919Dec-94 $27.875 $0.000 2.76% 1.028Jan-95 $25.250 $0.260 -8.48% 0.915Feb-95 $26.125 $0.000 3.47% 1.035Mar-95 $26.875 $0.000 2.87% 1.029Apr-95 $27.125 $0.310 2.08% 1.021May-95 $29.250 $0.000 7.83% 1.078Jun-95 $29.750 $0.000…arrow_forward
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