Investments according to their expected returns

Assignment Help Financial Management

Reference no: EM131334035

Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns.

a) Buy a stock for $30 a share, hold it for three years, and then sell it for $60 a share (the stock pays annual dividends of $2 a share).

b) Buy a security for $40, hold it for two years, and then sell it for $100 (current income on this security is zero).

c) Buy a one-year, 5% note for $1,000 (assume that the note has a $1,000 par value and that it will be held to maturity).

Reference no: EM131334035

Questions Cloud

Resource partitioning led to character displacement : Explain how resource partitioning led to character displacement in the interactions between the benthic and limnetic sticklebacks in Paxton Lake.

What is degree of combined leverage at both sales levels : Healty Foods Inc sells 50 lb bags of grapes to the military fo $10 a bag. The fixed costs of this operation are $80,000 while the variable costs of grapes are $.10 per lb. What is the break-even point in bags? Calculate the profit or loss on 12, 000 ..

Scallops on the atlantic coast of north america : Explain why the removal of great sharks poses a threat to bay scallops on the Atlantic Coast of North America, despite the fact that large sharks do not feed on scallops. Include the concept of a trophic cascade in your discussion.

Why would policymakers choose to impose a price ceiling : Analyze the effect a $300 price ceiling would have on the market for ten-speed bicycles. Would this be a binding price ceiling - analyze the effect a $700 price floor would have on this market for ten-speed bicycles. Would this be a binding price ..

Investments according to their expected returns : Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. Buy a one-year, 5% note for $1,000 (assume that the note has a $1,000 par value and that it will be held to maturity).

Describe the organism role in the environment : Briefly describe the environment (temperature, landscape, food sources, etc.) and describe the organism's role in the environment. Determine which organism your chosen organism would be most closely related to using a phylogenetic tree.

Do data collection methods match the research question : Describe what data collection methods were used? Do data collection methods match the research question? Evaluate the author's discussion and conclusions. Has the author made generalizations that are not supported by the study's data?

Where does this course fit in my career goals : Where? Where does this course fit in my career goals? Where could I schedule an interview or internship to bridge the theory in my course with the practice of a job in the field

Determine gumcharas materials price variance : Determine Gumchara's materials price variance. Determine Gumchara's materials quantity variance. Will Gumchara's overhead volume variance be favorable or unfavorable? Why?

User Account

All Pages