Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. Firm ABC's stock has a 50% chance of producing a 25% return, a 30 % chance of producing a 10% return and a 20 % chance of producing a -28% return. What is the firms expected rate of returns?

2. A 2- stock portafolio with a total value of $100,000. $37500 is invested in stock A with a beta of .75 and the remainder is invested in stock B with a beta of 1.42. What is the portafolio's beta?

3. ABC's stock has a beta of 1.40, the risk-free rate is 4.25% and the expected return on the market portfolio is 9.75%. What is the expected return on ABC's Stock?

4. you believe the following probability and distribution exists for stock ABC, What is the coefficient of variation on ABC's Stock?

State of Economic Probability of State Occurring Stock's Expected return
Boom 0.45 25%
Normal 0.50 15%
Recession 0.05 5%

5. ABC Corporation's stock had expected return of 11.75% last year, when the risk free rate was 5.50% and the MARKET RISK PREMIUM was 4.75%. then an increase in investor risk aversion caused the MARKET RISK PREMIUM to rise by 2%. The risk free rate and the firm's beta remain unchanged. What is ABC stock's new expected rate of return?

6. A stock will have a dividend of $0.75 at the end of the year. The required rate of return is r's= 10.5%, and the expected constant growth rate is g= 6.4%.. What is the stock's current price?

7. If D1 = $1.25, g =4.75% and expected to remain so, and P'0= $26.00. What is the stock's expected dividend yield for the coming year?

8.If D1 = $1.50, g =6.5% and expected to remain so, and P'0= $56.00. What is the stock's expected Capital gains for the coming year?

9. XYZ Inc. has an outstanding issue of perceptual preferred stock with an annual dividend of %7.50 per share. If the required return on this preferred stock is 6.5%, at what price should the stock sell?

10. Acme corporation will pay a dividend of D'1= $1.72. Analysts expected the company's dividend to grow by 10% between year 1 and 2, and at a constant rate of 5% from year 2 to 3 and continue with the 5% thereafter. The required return on this stock is 9.00%. What is the best estimate of the stock's current market value?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M925531

Have any Question? 


Related Questions in Basic Finance

You have been working at your first job since college for

You have been working at your first job since college for five year. You now wish to buy a house instead of continuing to rent. You can only afford a monthly payment of $1,500. Assuming a 30-year mortgage, and an interes ...

I need someone to write my outline heshe can pick any topic

I need someone to write my outline. He/She can pick any topic from the book. Please let me know ASAP. The instructions: D. Research Paper: The research paper should discuss a topic related to fund or non-profit accountin ...

Segmented markets theoryif the segmented markets theory

Segmented Markets Theory : If the segmented markets theory causes an upward-sloping yield curve, what does this imply? If markets are not completely segmented, should we dismiss the segmented markets theory as even a par ...

Identify a sample of food companies for example you could

Identify a sample of food companies. For example, you could try Campbell Soup (CPB), General Mills (GIS), Kellogg (K), Kraft Foods (KFT), and Sara Lee (SLE). a. Estimate beta and R2 for each company, using five years of ...

The account balance on april 1st is 5051 on april 15th a

The account balance on April 1st is $50.51. On April 15th a payment of $15.00 is made. On April 25th a purchase of $19.27 is made. The annual rate is 18%. What is the finance charge using the previous balance method? Wha ...

Jackson corporations bonds have 19 years remaining to

Jackson Corporation's bonds have 19 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9.5%. The bonds have a yield to maturity of 12%. What is the ...

An inverted yield curve occurs when short-term interest

An inverted yield curve occurs when short-term interest rates are higher than long-term rates. It is often said that an inverted yield curve is a sign of coming recession. Why do you think the view makes sense? Why not?

Given the expected relationship between the real interest

Given the expected relationship between the real interest rate and investment, how would you explain a scenario where investment continued to fall despite low or even negative real interest rates?

Problema manager checked production records and found that

Problem A manager checked production records and found that a worker produced 195 units while working 50 hours. In the previous week, the same worker produced 144 units while working 40 hours. a. Compute Current period p ...

Explain the function of eachanational credit union share

Explain the function of each: (a)National Credit Union Share Insurance Fund; (b)Pension Benefit Guaranty Corporation; (c) Securities Investor Protection Corporation; (d) FDIC

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate