Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Question
Chapter 9, Problem 1DQ
Summary Introduction

To identify: The current stock price of given company and the performance of the stock relative to the market.

Introduction:

Stock Price:

It refers to the price of a single share of a company in the share market. The trading of shares of a company takes place in the share market. It provides the value of the company in the market in terms of total value of their share capital.

Blurred answer
Students have asked these similar questions
Using 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.
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?
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 9 Solutions

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Knowledge Booster
Similar questions
  • Your friend is thinking about buying shares of stock in a company. You have been tracking the closing prices of the stock shares for the past 90 trading days. Which type of graph for the data, histogram or time-series, would be best to show your friend? Why? A. A time-series graph because the pattern of stock prices over time is more relevant than the frequency of a range of closing prices.   B. A time-series graph because the pattern of stock prices over time is less relevant than the frequency of a range of closing prices.       C. A histogram because the pattern of stock prices over time is less relevant than the frequency of a range of closing prices.   D. A histogram because the pattern of stock prices over time is more relevant than the frequency of a range of closing prices.
    Please explain the price movements of each stock's DIS AND WFC from the past three months. Do the calculations on the spreadsheet show that the company's stock went up or down? Why? Demonstrate a clear understanding of the concept beta of each stock.
    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?
  • Using the data in the following​ table, calculate the return for investing in Boeing stock​ (BA) from January​ 2, 2008, to January​ 2, 2009, and also from January​ 3, 2011, to January​ 3, 2012, assuming all dividends are reinvested in the stock immediately.     Historical Stock and Dividend Data for Boeing                                                             Date               Price Dividend Date               Price    Dividend 1/2/2008          86.62               1/3/2011          66.40  2/6/2008          79.91   0.40     2/9/2011          72.63   0.42 5/7/2008          84.55   0.40     5/11/2011        79.08   0.42 8/6/2008          65.40   0.40     8/10/2011        57.41   0.42 11/5/2008        49.55   0.40     11/8/2011        66.65   0.42 1/2/2009          45.25               1/3/2012          74.22
    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. Estimate Goodman’s and Landry’s betas as the slopes of regression lines with stock returns on the vertical axis (y-axis) and market return on the horizontal axis (x-axis).  (Hint: use Excel’s SLOPE function.)  Are these betas consistent with your graph?
    The​ 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​…
  • 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. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then calculate average returns over the five-year period.  (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in the index.   Also, you cannot calculate the rate of return for 2015 because you do not have 2014 data.)
    The following information relates to the prices and dividends of two stocks listed on the Ghana Stock Exchange as well as the average market returns.   Stock A Stock B   Year Price Div Price Div Market Returns 2011 20 0 11 0 0 2012 24 1.2 13 1.6 0.25 2013 26 0.5 17 0.5 0.18 2014 31 1 20 0.9 0.11 2015 33 1.5 23 1.2 0.12 2016 40 2 27 1.5 0.15   Required. Calculate the annual returns for each stock (2012-2016) Calculate the average returns for each of the stocks and the market Calculate the covariance between the stocks Assuming the two stocks are equally weighted, calculate the portfolio return and portfolio risk
    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.
    Recommended textbooks for you
  • Fundamentals of Financial Management, Concise Edi...
    Finance
    ISBN:9781285065137
    Author:Eugene F. Brigham, Joel F. Houston
    Publisher:Cengage Learning
    Fundamentals Of Financial Management, Concise Edi...
    Finance
    ISBN:9781337902571
    Author:Eugene F. Brigham, Joel F. Houston
    Publisher:Cengage Learning
    Fundamentals of Financial Management, Concise Edi...
    Finance
    ISBN:9781305635937
    Author:Eugene F. Brigham, Joel F. Houston
    Publisher:Cengage Learning
  • Pfin (with Mindtap, 1 Term Printed Access Card) (...
    Finance
    ISBN:9780357033609
    Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
    Publisher:Cengage Learning
    Managerial Accounting
    Accounting
    ISBN:9781337912020
    Author:Carl Warren, Ph.d. Cma William B. Tayler
    Publisher:South-Western College Pub
    EBK CONTEMPORARY FINANCIAL MANAGEMENT
    Finance
    ISBN:9781337514835
    Author:MOYER
    Publisher:CENGAGE LEARNING - CONSIGNMENT
  • Fundamentals of Financial Management, Concise Edi...
    Finance
    ISBN:9781285065137
    Author:Eugene F. Brigham, Joel F. Houston
    Publisher:Cengage Learning
    Fundamentals Of Financial Management, Concise Edi...
    Finance
    ISBN:9781337902571
    Author:Eugene F. Brigham, Joel F. Houston
    Publisher:Cengage Learning
    Fundamentals of Financial Management, Concise Edi...
    Finance
    ISBN:9781305635937
    Author:Eugene F. Brigham, Joel F. Houston
    Publisher:Cengage Learning
    Pfin (with Mindtap, 1 Term Printed Access Card) (...
    Finance
    ISBN:9780357033609
    Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
    Publisher:Cengage Learning
    Managerial Accounting
    Accounting
    ISBN:9781337912020
    Author:Carl Warren, Ph.d. Cma William B. Tayler
    Publisher:South-Western College Pub
    EBK CONTEMPORARY FINANCIAL MANAGEMENT
    Finance
    ISBN:9781337514835
    Author:MOYER
    Publisher:CENGAGE LEARNING - CONSIGNMENT