User Account

All Pages

Annual expected rate of return

Assignment Help Business Economics
Reference no: EM132284815

Q1. Dominant Conglomerate's preferred stock pays a dividend of $1.40 per quarter. If the price of the stock is $75.00, what is its nominal (not effective) annual expected rate of return?

Q2. M. Roussakis Inc.'s stock currently sells for $45.00 per share. The stock's dividend is projected to increase at a constant rate of 4% per year. The required rate of return on the stock, rs, is 14.50%. What is Roussakis' expected price 5 years from now?

Q3. A share of common stock has just paid a dividend of $4.50. If the expected long-run growth rate for this stock is 6%, and if investors' required rate of return is 10.5%, what is the stock's intrinsic value?

Q4. U.S. Treasury 30 year maturity, zero coupon bonds are currently selling in the marketplace with a yield to maturity of 7.00%. Even though the bonds have a coupon rate of 0.00%, please assume semi-annual compounding, which is the bond market convention? If inflation increased unexpectedly, forcing the nominal required rate of return on these Treasury bonds to increase by 1.25% to 8.25%, by what dollar amount would the current market price of these bonds decrease?

Reference no: EM132284815

Questions Cloud

What is the current share price : If the required return is 12 percent and the company just paid a $3.80 dividend. What is the current share price?
The importance of businesses monitoring social media : The importance of businesses monitoring social media within the workplace when utilizing employer-provided computers, cell phones, tablets, etc.,
Discuss the dance mask in detail : Choose three of the following questions and write a 150-350 word response to each question (points deducted for not meeting word count requirements).
Policy related to the prevention of sexual harassment : A policy related to the prevention of sexual harassment and discrimination including specific action items that will be required of employees and management.
Annual expected rate of return : If the price of the stock is $75.00, what is its nominal (not effective) annual expected rate of return?
Social media should be blocked at the workplace : I personally feel that the online and social media should be blocked at the workplace, not monitored; I see that as an invasion of privacy.
What was the cost of food sold : At House of Crab, beginning inventory was $7340, purchases for the month totaled $32,500, food in production was $650 and closing inventory was $6230.
Compare and contrast the use of tcpdump and wireshark : Compare and contrast the use of TCPdump and Wireshark. In what situations would each of these tools be most effective?
What are internally consistent compensation systems : What are internally consistent compensation systems? Next, what is the importance of job analysis and evaluation?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd