Compute the percentage total return

Assignment Help Financial Management

Reference no: EM131853640

1. A 5-year corporate bond yields 9 percent. A 5-year municipal bond of equal risk yields 6.5 percent. Assume that the state tax rate is zero. At what federal tax rate are you indifferent between the two bonds? [Set your calculator to at least four decimal places]

27.78%

33.33%

41.22%

54.33%

72.22%

2. Suppose a stock had an initial price of $52 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $67. Compute the percentage total return.

24.55

31.63

33.22

40.38

Reference no: EM131853640

Questions Cloud

College expenses on the day she starts college : Will there be enough money in the account for Ashley to pay for her college expenses on the day she starts College?

What must the coupon rate be on the bonds : Kiss the Sky Enterprises has bonds on the market making annual payments, with 18 years to maturity, What must the coupon rate be on the bonds?

What is its expected rate of return : If you construct a portfolio with a standard deviation of 22%, what is its expected rate of return?

You deposit each year to achieve your goal : You want to have $4.5 million in real dollars in an account when you retire in 30 years. What real amount must you deposit each year to achieve your goal?

Compute the percentage total return : Suppose a stock had an initial price of $52 per share, paid a dividend of $1.45 per share during the year, Compute the percentage total return.

What is the net present value of this investment : Caesars Palace Las Vegas made headlines when it undertook a $75 million renovation. What is the net present value (NPV) of this investment?

Required return must investors be demanding on storico stock : If the stock price is $40.95, what required return must investors be demanding on Storico stock?

What would be your total real return on investment : what would be your total real return on the investment?

Calculating real returns and risk premiums : You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: What was the average real return on Crash-n-Burn’s stock?

User Account

All Pages