Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) You have observed the returns on ABC's stocks over the last 5 years which are given below:

2.1%, 8.6%, 6.6%, 12.5%, 3.6%

Determine the arithmetic average returns on stock over this 6-year period.

2) Assume a stock had the initial price of= $75.92 per share, paid the dividend of= $8.6 per share during the year, and had the ending share price of= $95.62. If you own 327 shares, find out the dollar returns?

3) Laserclok Corporation paid dividend for 50 years till it experienced financial difficulty 3 years ago, at which time dividend payment was suspended (i.e., a dividend hasn't been paid during past 3 years). Company is now much stronger financially, but Laserclok doesn't expect to pay the dividend for next 5 years. Beginning 6 years from today, company will pay dividend equal to= $2.10, which is 5% greater than last dividend paid 3 years ago. After dividend payments start again, Laserclok expects dividend to continue to be paid and to grow at constant rate of 5%. If suitable market rate for investments similar to Laserclok's stock is 15%, at what price must the stock presently be selling in financial markets?

a) $21.00
b) $10.44
c) $14.00
d) There is not sufficient information to reply the problem.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914801

Have any Question? 


Related Questions in Basic Finance

1 if a firms required return were 0 percent would time

1. If a firm's required return were 0 percent, would time value of money matter? As these returns rise above 0 percent, what effect would the increasing return have on future value? Present value? 2. What would happen to ...

1 explain the difference between rejecting and failing to

1. Explain the difference between rejecting and failing to reject the null hypothesis. In which case does a researcher conclude that the independent variable has an effect on the dependent variable? 2. Distinguish betwee ...

Empirical studies have established that the betas of

Empirical studies have established that the betas of conglomerate firms have been significantly above 1. What does this imply about diversification as a strong motive for conglomerate mergers? Over a long period of time ...

As in ada suppose that each expression must have a unique

As in Ada, suppose that each expression must have a unique type, but that from a subexpression, by itself, all we can deduce is a set of possible types. That is, the application of function E1 to argument E2, represented ...

1what is cash position management what types of firms set a

1.What is cash position management? What types of firms set a target cash balance? Why? What is the purpose of a bank's requiring the firm to maintain a minimum balance in its checking account? How does this relate to a ...

A property is expected to have noi of 100000 the first year

A property is expected to have NOI of $100,000 the first year. The NOI is expected to increase by 3 percent per year thereafter. The appraised value of the property is currently $1 million and the lender is willing to ma ...

Toynbspcorpnbspis analyzing its optimal capital structure

Toy Corp. is analyzing its optimal capital structure. Currently, Toy's capital structure includes 10% debt and the company is planning to triple (3x) its debt capitalization.  Assume that the current risk-free rate is 3. ...

1 what is an angel capitalist how do the financing

1. What is an angel capitalist? How do the financing techniques used by angels differ from those used by professional venture capitalists? 2. Distinguish between the four basic types of venture capital funds. Which type ...

Assume that european call and put options exist on a stock

Assume that European call and put options exist on a stock. That stock, however, is the target of a takeover in which an acquiring firm offers a fixed price for the stock. The takeover is almost certain to occur shortly ...

Several stock valuation models were described in the

Several stock valuation models were described in the chapter, including zero-growth, constant growth, variable growth, free cash flow, book value, and P/E multiple models. Which of these do you believe would generate the ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro