Reference no: EM131406177
Assignment
1. You own a portfolio that has $2,500 invested in Stock A and $3,500 invested in Stock B. If the expected returns on these stocks are 10 percent and 16 percent, respectively, what is the expected return on the portfolio? (Show your work.)
2. A stock has a beta of 1.05, the expected return on the market is 12 percent, and the risk-free rate is 4 percent. What must the expected return on this stock be? (Show your work.)
3. Suppose Pat, Ltd. just issued a dividend of $2.40 per share on its common stock. The company's dividends have been growing at a rate of 5%. If the stock currently sells for $80.00, what is your best estimate of the company's cost of equity? (Show your work.)
4. Given the following information, calculate the weighted average cost for the Ban Corp.
Percent of capital structure:
Preferred stock 10%
Common equity 70%
Debt 20%
Additional information:
Corporate tax rate 34%
Dividend, preferred $8.00
Dividend, expected common $4.00
Price, preferred $80.00
Growth rate 5%
Bond yield 7%
Price, common $80.00
5. What are some important factors to consider when conducting a credit evaluation and scoring?
6. Explain the concept of the stakeholder in contemporary finance.
7. What is the difference between diversifiable and non-diversifiable risk? Give examples of each.
|
Draw a histogram of tpcp
: Draw a histogram of TPCP. Estimate by eye the lowest and the highest data values from the graph (do not calculate; instead, estimate from your graph). Are there any outliers
|
|
What are the advantages of automated inspection
: What are the advantages of automated inspection? Why has it become an important part of manufacturing engineering?
|
|
What is the banks cost of preferred stock
: Fifteenth Bank has an issue of 7% preferred stock with a $100.00 par value that just sold for $109 per share. What is the bank's cost of preferred stock?
|
|
Was the article logically organized and clearly presented
: Read through the article, and at the arrow below, list all the unknown words and phrases you encounter. Look up the words you find and add the definition next to each. If you can't find the meaning of a word (often the case with foreign words), of..
|
|
Explain concept of the stakeholder in contemporary finance
: Explain the concept of the stakeholder in contemporary finance. What is the difference between diversifiable and non-diversifiable risk? Give examples of each.
|
|
Calculate the control limits for averages and for ranges
: In an inspection with a sample size of 12 and a sample number of 40, it was found that the average range was 14 and the average of averages was 80. Calculate the control limits for averages and for ranges.
|
|
Examine the types of decisions financial managers make
: FIN 320- Examine the types of decisions financial managers make. How are these decisions related to the primary objective of financial managers? Analyze the various ethical issues a financial manager could potentially face and how these could be ha..
|
|
Describe the evolution of the american colonies
: Describe the evolution of the American colonies into a "slave society and describe the role of the Declaration of Independence and Constitution on American slavery.
|
|
Reflect on the life of the historical figure
: Draw conclusions, and prepare your thesis. Reflect on the life of the historical figure. Once you have done your research and have gathered enough information about the historical figure, you should sit back to think about what it means, to see if..
|