Compute the anticipated return for stock

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1. The stock of Furniture Unlimited went from $91 to $100 last year. The firm also paid $1.55 in dividends. Compute the rate of return. 3. (TCO 4) What is the approximate yield to maturity of a 10% coupon rate, $1,000 par value bond that is currently priced at $1,250, with 10 years to maturity

4. A convertible bond has a face value of $1,000 and the conversion price is $70 per share. The stock is selling at $35 per share. The bond pays $60 per year in interest and is selling in the market for $965. It matures in 7 years. Market rates are 10% annually. (I) What is the conversion ratio? (II) What is the conversion value?

6. A fund is set up to charge a load. Its net asset value is $23.50 and its offer price is $24.80. What percentage of the offer price does the load represent?

7. A shopping center has an annual net operating income of $1,200,500 and a capitalization rate of 12%. What is its value?

8. Using the formula for the security market line, if the risk-free rate (RF) is 8%, the market rate of return (KM) is 11%, and the beta (bi) is 1.5, compute the anticipated return for stock i (Ki).

Reference no: EM131538268

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