Perpetual preferred stock with annual dividend

Assignment Help Financial Management

Reference no: EM131864459

1. Jim Angel holds a $200,000 portfolio consisting of the following stocks: Stock Investment Beta A $50,000 1.20 B $50,000 0.80 C $50,000 1.00 D $50,000 1.20 Total $200,000 What is the portfolio's beta? Do not round your intermediate calculations.

a. 0.861 b. 0.809 c. 1.050 d. 1.239 e. 1.040

2. Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $2.00 per share. If the required return on this preferred stock is 6.5%, at what price should the stock sell?

a. $32.92

b. $30.77

c. $23.38

d. $27.38

e. $38.15

3. Wendy purchased 800 shares of Genetics Stock at $3 per share on 1/1/15. Wendy sold the shares on 12/31/15 for $3.45. Genetics stock has a beta of 1.9, the risk-free rate of return is 4%, and the market risk premium is 9%. Wendy's holding period return is

a. 15.0%.

b. 16.5%.

c. 17.6%.

d. 21.1%.

Reference no: EM131864459

Questions Cloud

Explain what is meant by felonymurder : Explain what is meant by felonymurder. Can a defendant be convicted of first-degree (premeditated) murder based on the felony-murder doctrine?

How big a molecule can move through the wall : New cell wall polysaccharides and enzymes that must modify the wall are big molecules! How big a molecule can move through the wall

Imposition of capital punishment : The imposition of capital punishment has been marred by errors in convictions

Describe the impact of e-business on leadership : Describe the impact of e-business on leadership. What differences would a manager have to be aware of if doing business in Africa, Australia, or South America?

Perpetual preferred stock with annual dividend : Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $2.00 per share.

Discuss the definition of crime : Discuss social conflict theory as it represents the social power perspective on crime. Please briefly discuss the definition of crime

Define a function that inserts a given integer into a bst : Define a function that inserts a given integer into a BST. Define a function that maps a given unsorted integer list to a BST, using your insertion function.

Basis of hirschi delinquency theory : Describe the four bonds that form the basis of Hirschi's delinquency theory. How can one create stronger social bonds in a person who is, right now, an offender

Write list comprehensions to compute list of female employee : Write list comprehensions to compute a list of all female employees and a list of the names of all managers. Also write an expression to compute.

User Account

All Pages