Calculate the percentage total return of the stock

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Reference no: EM132443330

Problem 1: Calculating Returns: A stock with an initial price of $55 per share paid a dividend of $1.75 per share throughout the year, with an ending price of $59. Calculate the percentage total return of the stock.

Problem 2: Calculating Returns: One year ago, you bought an 8.75 percent coupon bond for $1,065. Today the bond sells for $990.

  • Calculate the total real rate of return on the investment with a $1,000 face value.
  • Calculate your total nominal rate of return on the investment this past year.

Problem 3: Holding Period Return: A stock has had returns of -19.52 percent, 17.82 percent, -11.93 percent, 21.35 percent, and 6.43 percent over the past five years, respectively. Calculate the holding period return for the stock.

Problem 4: Calculating Returns: Last year you bought a share of 7.25% preferred stock for $63.75. Your stocks market price is now $66.92. Calculate your total return for last year?

Problem 5: Calculating Returns: You bought a stock 3 months ago for $24.87 per share. The stock pays no dividends and is currently priced at $26.35. Calculate the APR of your investment? The EAR?

Problem 6: Determining Portfolio Weights: A portfolio contains 65 shares of Stock X that sells for $32 per share and 175 shares of Stock Z that sell for $26 per share. Calculate the portfolio weight for each stock.

Problem 7: Portfolio Expected Return: You own a portfolio that has $4,600 invested in Stock X and $5,200 invested in Stock Z. What is the expected return on the portfolio if the expected returns on these stocks are 9.75 percent and 16.50 percent?

Problem 8: Using CAPM: A stock has a beta of 1.65, and the projected return on the market is 12.25 percent, with a risk-free rate of 4.75 percent. Calculate the projected return on this stock.

Problem 9: Calculating Cost of Equity: The Denton Corporation's common stock has a beta of 1.45 and a risk-free rate of 5.75 percent. What is Denton's cost of equity if the projected return on the market is 13 percent?

Problem 10: Calculating WACC: If Metro Company has the following features, what is its WACC?

  • A target capital structure of 65 percent common stock.
  • A target of 35 percent debt.
  • Cost of equity 14 percent.
  • Cost of debt is 6 percent.
  • The tax rate is 35 percent

Reference no: EM132443330

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