Considering adding gold as an asset to your portfolio

Assignment Help Financial Management
Reference no: EM132030653

1. Apple just paid a dividend of $3 per share. You expect that Apple’s dividend will grow at the rate of 20% per year for the next three years. After that, you expect that this rate will drop to10% per year forever. The required rate of return for Apple is 20%. What is the share price of Apple Inc. just before the dividend was paid?

2. You have a portfolio that is well diversified. You are considering adding gold as an asset to your portfolio. What is the most important factor in deciding whether you should add gold to your portfolio or not? Your answer should not be more than one word.

Reference no: EM132030653

Questions Cloud

Two stocks for two particular market returns : The following gives an analyst's expected return on two stocks for two particular market returns. What are the betas of the two stocks?
How much is in the account at the end of the 6 years : $750 are deposited into an account monthly for six years at an interest rate of 6.7?% compounded monthly. How much is in the account at the end of the 6 years?
Payment and the total interest for the amortized loan : You saved $ 9000 for a down payment and can get a four year car loan at 6.15%. Find the monthly payment and the total interest for the amortized loan.
Confidence interval becomes narrower : When computing a confidence interval with a sample size of 100 and the confidence interval of the sample size decreases to 80?
Considering adding gold as an asset to your portfolio : You have a portfolio that is well diversified. You are considering adding gold as an asset to your portfolio.
Discuss the differences in competencies : Discuss the differences in competencies between nurses prepared at the associate-degree level versus the baccalaureate-degree level.
How many rows and columns would the cross tables table have : How many rows and columns would the cross tables table have? If there Is a victim's gender related to whether or not the offender will be convicted.
Share an experience when you have failed forward : Share an experience when you have failed forward. Share an experience when you have not failed forward.
Identify variables level of measurement : Identify each variables level of measurement if a victim's gender related to whether or not the offender will be convicted for the crime?

Reviews

Write a Review

Financial Management Questions & Answers

  The yield to maturity on the bonds

The total book value of WTC’s equity is $10 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 15%. The firm’s bonds have a face value of $5 million and sell at a price of 110% of face val..

  Hedge the translation exposure of its german subsidiary

What alternative hedging transactions are available to a company seeking to hedge the translation exposure of its German subsidiary?

  Give two examples of management communication

Give two examples of management communication through corporate actions (things that they do instead of things they say) that convey information to shareholders. Explain what information is conveyed through those actions.

  What is the value of southern autos equity to pit row auto

Pit Row Auto, a national auto-parts chain, is considering purchasing a smaller chain, Southern Auto. Pit Row's analysts project that the merger will result in incremental free cash flows and interest tax savings of $2 million in Year 1, $4 million in..

  Templeton called the bonds

Compute the realized rate of return for an investor who purchased bonds when they were issued and held them until they were called. Templeton called the bonds

  The forward is present premium at what percent

The forward is present premium (or discount) at what percent?

  Future retirement income and expense projections

Peter and Blair recently reviewed their future retirement income and expense projections.

  What amount of income tax expense

Standish Company began the year with a balance in its Income Taxes Payable account of $5,000. The year-end balance in the account was $18,000. The company uses the indirect method in the Operating Activities section of the statement of cash flows. Wh..

  How many shares will be outstanding after the repurchase

The balance sheet for Levy Corp. is shown here in market value terms. There are 6,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 44,900 Equity $ 474,900 Fixed assets 430,000 Total $ 474,900 Total $ 474,900 Instead of a dividend of..

  Considered an ancillary charge

Which of the following is considered an ancillary charge? Double-entry accounting refers to the fact that every financial transaction is:

  Calculate buy and hold return for companies and portfolio

calculate Buy and Hold Return for the following companies and for the portfolio:

  What is initial investment outlay

Talbot Industries is considering launching a new product. What is the initial investment outlay?

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!

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