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 US Bank PepsiCo 3DS Uniphase Duke Energy Shares 900 800 1,700 800 Portfolio Return Dollar return Percentage return Beginning of Year Price $45.20 60.78 20.58 28.30 Dividend Per Share $2.23 1.50 1.43 What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.) % End of Year Price $45.13 64.25 18.36 34.06
Q: 5. [Weighted Average Cost of Capital] Kareem Construction Company has the following amounts of…
A: Cost of short term debt = csd = 11%Cost of long term debt = cld = 13%Cost of equity = ce = 24%Value…
Q: One of the disadvantages associated with sole proprietorships is that: raising working capital is…
A: Introduction:Sole proprietorships- Under this type of business, there is only one owner i.e., the…
Q: Suppose Apple bonds had a deferred call provision that permitted the company (if desired) to call…
A: Here,ParticularsYTMYTCTime to maturity19.009.00Face value of the bond (FV) $ 1,000.00 $…
Q: Levy Corp. is an unlevered firm worth $507,000 (market value). There are 14,000 shares of stock…
A: To calculate the cost for repurchasing each share of stock, we need to consider the amount of stock…
Q: ou are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the…
A: In this question , we will be calculating monthly payment on car loan at 7% APR with monthly…
Q: Find the convexity of a seven-year maturity, 6.5% coupon bond selling at a yield to maturity of…
A: Bond convexity is a measure of the curvature or non-linearity of the relationship between a bond's…
Q: A company has a property insurance policy with an annual premium of $1,310. In recent months, the…
A: Policy premium = $1310Number of effective Days = 310
Q: A corporate bond with a coupon rate of 6% pays interest semiannually and has a maturity date of May…
A: Bond price is the value of the discounted cash flows of the bond namely coupons and par value.
Q: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are…
A: Bonds are commonly used by investors to generate income and diversify their investment portfolios.…
Q: What is the future value of an account if $8,000 is invested at a rate of 7% compounded monthly for…
A: Future Value = P * (1 + i/n)(n x t)Where: P = Initial Invested amount i = Annual interest rate n =…
Q: xpanding very rapidly in recent years, making its shareholders rich in the process. The average…
A: Capital budgeting refers to a technique used by the investors while accepting or rejecting the…
Q: What is the market-cap weighted index of the following three stocks assuming the beginning index…
A: A capitalization-weighted index, often referred to as a market value-weighted index, is a kind of…
Q: REH Corporation's most recent dividend was $2.82 per share, its expected annual rate of dividend…
A: Share valuation is the process of determining the actual worth of a company using quantitative…
Q: You are considering a new product launch. The project will cost $2,050,000, have a 4-year life, and…
A: Net present value is the difference between the present value of cash inflows and present value of…
Q: What is a firm’s cost of capital? Include discussions about debt, preferred stock, common stock and…
A: Cost of capital refers to the cost justified to pay or required to pay for the use of money from…
Q: With the help of examples, explain how futures contracts can be used to reduce systematic risk in…
A: The future contract are important part of hedging and other strategy. The value is based on the…
Q: Prokter and Gramble (PG) currently has $25 billion outstanding debt. PG has a cost of equity capital…
A: Market Value of share refers to the value at which specific shares are traded over the stock…
Q: From the following cash flow diagram of nine years and 6% interest rate, find the present value, P.
A: Present value gives the present value of a future cashflow.…
Q: 2.3 Which one of the following statements is correct? Select one: OA. An accrual is an expense that…
A: Financial statement is a formal record or report of financial activities and performance of…
Q: amount of cash that a firm needs to carry? What are the advantages and disadvantages of daily over…
A: The concept of cash is an important decision regarding management of operation and growth.Cash is…
Q: You just deposited $6,300 in a retirement account and expect to earn an average return of 6.3…
A: Data given:PV=$6300Rate=6.3% (assumed annual compounding)n=30 yearsIf deposited 8 years…
Q: Luthra Corporation is considering a new capital investment on the Island. The project is expected to…
A: Introduction:NPV is defined as the sum of the present values of all future cash inflows less the…
Q: exican Motors' market cap is 300 billion pesos. Next year's free cash flow is 9.6 billion pesos.…
A: Dividend is the profit or share of profits which is being distributed to shareholders. As per…
Q: Suppose you borrow $21,000 from your bank to buy a car. You agree to pay $433.89 per month for 60…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
Q: You are keen on the use of solar power and have decided to evaluate investing in a solar system for…
A: To calculate the various cash flows and the net present value (NPV) of the solar system investment,…
Q: ou were asked to estimate the cost of common based on the three most commonly used methods and then…
A: We can determine the cost of equity in 3 ways.1. Bond yield + Risk PremiumCost of equity = Bond…
Q: You must evaluate a proposal to buy a new milling machine. The base price is $108,000, a…
A: After tax salvage value is calculated as shown below.
Q: Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash…
A: NPV shows the amount of value produced by the investment & is expressed in absolute…
Q: Karen obtained a $25,000 loan at 4.5% compounded semiannually. a-1. What monthly payment will repay…
A: The present value concept is useful for borrowers to assess the affordability of a loan. By…
Q: You just took out a 10-year commercial real estate loan for your business. The loan amount is…
A: Loans are paid by equal monthly installments that carry payment for interest and payment for loan…
Q: How can a mutual fund manager who follows a momentum trading strategy expect to earn above - average…
A: Momentum trading strategy: Momentum trading is an investment strategy that seeks to capitalize on…
Q: QUESTION 10 Suppose you deposit $5,000 a year at the end of each year for 10 years. You earn 4.2%…
A: Future value is the value of asset or investment, made for the number of period at equal interval at…
Q: a) Consider 3 month options with exercise prices of 45 TL. The variance of the underlying security…
A: a. Call Option Price:C = S * N(d1) - X * e^(-rT) * N(d2)Put Option Price:P = X * e^(-rT) * N(-d2)…
Q: A two-year bond with par value $1,000 making annual coupon payments of $98 is priced at $1,000.…
A: Time = nper = 2 yearsFace value = fv = $1000Coupon Payment = pmt = $98Price of bond = pv = $1000
Q: A 12-year, semiannual coupon bond is priced at $1,102.60. The bond has a $1,000 face value and a…
A: Here,ParticularsValuesTime to maturity12.00Current price of the bond (PV) $ 1,102.60Face value of…
Q: You just turned 20 years old and want to retire when you turn 65. You plan to put $4,900 every year…
A: FV represents the total value or amount of an investment or account at a specific future point in…
Q: values. All other answers Risk-Adjusted Performance Measures s Sharpe Ratio be put ail Treynor's…
A: Risk adjusted measures are used to determine the reward an investor would get for taking that amount…
Q: Cisco, Inc., has a proposal from the Engineering Planning Division to invest Cisco retained earnings…
A: To calculate the infinite-life equivalent annual cost, we need to find the present value of the…
Q: Jordan, Corp., has debt outstanding with a market value of $3 million. The value of the firm would…
A: Bankruptcy Cost:The dollar value that a firm incurs for undertaking bankruptcy procedure is the…
Q: The National Bank unexpectedly increases the base rate by 2% (200 basis points), which cause an…
A: The National Bank's unexpected increase in the base rate and the ensuing rise in the yield to…
Q: You own a 9 year zero coupon bond, a 16 year zero coupon bond and a 10 year coupon bond that pays…
A: Introduction:Zero coupon bond-Such bonds are issued at a discount to its par value and they do not…
Q: 1. Determine the future value: Periodic Payment (S) 3500 Payment Interval 6 months Term 19 years…
A: Future value is the estimation of future cash value which is likely to be received a future date,…
Q: Nakamura,Incorporated, has a total debt ratio of. 75, total debt of $576,000, aND net income of…
A: Debt ratio is ratio of total debt being held by the business out of total assets. Return on equity…
Q: 2 decimals places are needed to answer this question.
A: According to Black Scholes Model, the option value is calculated as shown below.
Q: What was the return (in percent) of the stock market that day? (Negative answer should be indicated…
A: The calculation of rate of return is always associated with amount of investment.When we are…
Q: The certainty equivalent method Choice 1 of 4:increases the valuation relative to the standard…
A: Certainty Equivalent ,the amount that is guaranteed cash that the person will accept instead of…
Q: Better Mousetraps has developed a new trap. It can go into production for an initial investment in…
A: Net present value refers to the method of capital budgeting used for making decision whether to…
Q: Although discounted cash flow decision techniques have become widely accepted, their use depends to…
A: Capital budgeting decisions are important decisions are to be made by the business. These decisions…
Q: Where do nothing was preferred what assumption is being made about the return generated by the…
A: When the phrase "where nothing was preferred" is mentioned, it implies that the return generated by…
Q: Determine the salvage value for the push system that will make the company indifferent to the two…
A: First, we need to determine the PV of salvage value and deduct it from the first cost of the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- How do you calcuate the bechmark and historical return for the stock ARKK when the last price listed is $123.40 and the current value is $26,531.00.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 US Bank PepsiCo JDS Uniphase Duke Energy Shares 400 300 700 300 Dollar return Percentage return Beginning of Year Price $43.80 59.38 19.18 27.60 X Answer is complete but not entirely correct. Portfolio Return $ What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.) Dividend Per Share $2.09 1.22 1,187.00 X 2.08 × % 1.29 End of Year Price $43.73 62.85 16.96 33.36The 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 US Bank PepsiCo JDS Uniphase Duke Energy Dollar return Shares 900 800 1,700 800 Portfolio Return Percentage return Beginning of Year Price $44.30 59.88 19.68 27.85 What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.) Dividend Per Share $2.14 1.32 % 1.34 End of Year Price $44.23 63.35 17.46 33.61
- 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 US Bank PepsiCo JDS Uniphase Duke Energy Shares 200 100 300 100 Portfolio Return $ Dollar return Percentage return Beginning of Year Price $ 43.60 59.18 18.98 27.50 902.00 Dividend Per End of Year Price What is your portfolio dollar return and percentage return? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. % Share $ 2.07 1.18 1.27 $ 43.53 62.65 16.76 33.26Directions: Compute the returns, average of returns and standard deviation of the following stocks and the PSEI. 1. 2. AGI SM Year Stock Return x x (x--x)² Year Stock Return x x (x-x)² Price Price 30/1/2014 27.100 30/1/2014 704.500 28/2/2014 30.000 28/2/2014 694.000 31/3/2014 28.500 31/3/2014 705.000 30/4/2014 31.150 30/4/2014 725.000 30/5/2014 29.650 30/5/2014 786.000 30/6/2014 29.100 30/6/2014 816.000 31/7/2014 26.350 31/7/2014 797.000 29/8/2014 24.600 29/8/2014 772.000 30/9/2014 26.000 30/9/2014 803.500 31/10/2014 25.300 31/10/2014 783.500 28/11/2014 24.800 28/11/2014 804.500 29/12/2014 22.550 29/12/2014 815.000 PSEI Year Stock Return x X (x-X)? 30/6/2014 6,844.31 Price 31/7/2014 6,864.82 30/1/2014 6,041.19 29/8/2014 7,050.89 3. 28/2/2014 6,424.99 30/9/2014 7,283.07 31/10/2014 7,215.73 31/3/2014 6,428.71 28/11/2014 7,294.38 30/4/2014 6,707.91 29/12/2014 7,230.57 30/5/2014 6,647.65Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2016 13.0 0.2 2017 21.0 0.8 2018 -6.2 1.8 2019 29.8 2.1 2020 20.6 0.4 Required: What was the risk premium on common stock in each year? What was the average risk premium? What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)-- expressed in % (NOTE: 11.31% is incorrect)
- Assume these are the stock market and Treasury bill returns for a 5-year period: Year Stock Market Return (%) T-Bill Return (%) 2016 13.0 0.2 2017 21.0 0.8 2018 -6.2 1.8 2019 29.8 2.1 2020 20.6 0.4 Required: What was the risk premium on common stock in each year? What was the average risk premium? What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.)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 US Bank PepsiCo JDS Uniphase Duke Energy Shares 400 300 700 300 Portfolio Return Dollar return Percentage return Beginning of Year Price $43.80 59.38 19.18 27.60 Dividend Per Share $2.09 1.22 What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.) % 1.29 End of Year Price $43.73 62.85 16.96 33.36Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 1) 2) EGRH Inc. MP, Ltd. STOCK RETURN AVERAGE OF YEA AVERAGE OF RETURNS (x) YEAR STOCK RETURN PRICE (x₁) PRICE RETU Jan-2021 Po Feb-2021 P8.6 Jan-2021 PO. Feb-2021 PO.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Mar-2021 P9.14 Apr-2021 P13.30 May-2021 P13 Jun-2021 P60 Jul-2021 16.94 Jun-2021 P0.495 Jul-2021 PO.28 Aug-2021 PO Sep-2021 90 Aug-202 P13.70 Sep-2 P14.88 Oct-2021 0.375 Oct 21 P15.30 Nov-20 PO.325 N2021 P14.30 Dec-2 PO.330 ec-2021 P15.52 3) SD (8) GSM Inc. STOCK YEAR PRICE Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25 May-2021 P74.05 Jun-2021 P94.75 Jul-2021 P85.00 Aug-2021 P105.00 Sep-2021 P114.00 Oct-2021 | P101.00 Nov-2021 P100.40 Dec-2021 P113.80 SD (8) = RETURN (x₁) -x)² AVERAGE OF RETURNS (x-x)² (x) SD (8) = ACEE, Inc. YEAR STOCK RETURN PRICE (x₁) Jan-2021 P13.56 Feb-2021 P20.80 Mar-2021 P22.50 Apr-2021 P18.90 May-2021 P17.00…
- A stock had the following year-end prices and dividends. What is the geometric average annual return on this stock Time Price Dividend 0 $23.19 ? 1 $24.90 $0.23 2 $23.18 $0.24 3 $24.86 $0.25Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year Stock Market Return (8) (8) 2016 32.50 0.07 2017 11.80 0.07 2018 -2.40 0.07 2019 13.70 0.25 2020 22.40 0.27 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required C What was the risk premium on common stock in each year? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign.. Year Risk Premium 2016 % 2017 % 2018 % 2019 % 2020 %Your stock's returns for the past four years are as follows. t Return t1 19.79% t2 -0.58% t3 8.55% t4 4.68% Compute the geometric average return for this stock. Please enter your answer as a PERCENT rounded to 2 decimal places.