The total dollar amount return

Assignment Help Financial Management
Reference no: EM131329380

Microsystems Common Stock is selling for $80 per share and pays a cash dividend of $2.40 per share.

a. Calculate the current yield. If the stock is expected to rise to $86.40 in the next year, what would be

b. The total dollar amount return?

c. The total expected rate of return investors can expect from this stock?

Reference no: EM131329380

Questions Cloud

Traffic signal systems are being considered for intersection : Two traffic signal systems are being considered for an intersection. One system costs $34000 for installation and has an efficiency rating of 80% requires 30 kW power (output), incurs a user cost of $.21 per vehicle, and has a life of 12 years. At le..
Sustainable competitive advantage is influenced : Sustainable competitive advantage is influenced by: (Check all that apply) a lower price for the customer based on the value created for them (due to your operations or other cost control strategies) a rareness factor, meaning that competitors cannot..
Calculate the average net cash flow during the month : Tierney Enterprises is constructing its cash budget. Its budgeted monthly sales are $5,000, and they are constant from month to month. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month foll..
Create list of five ideas for a new venture : Create a list of 5 ideas for a new venture; include a brief description of each. Then select your top two ideas and write a brief paragraph about the potential of each, explaining why you think it’s a good idea. Research a franchise you might like to..
The total dollar amount return : Microsystems Common Stock is selling for $80 per share and pays a cash dividend of $2.40 per share. Calculate the current yield. If the stock is expected to rise to $86.40 in the next year, what would be. The total dollar amount return?
What is the cost of the origination fee in dollar terms : Let’s assume that you have just taken out a mortgage loan for $200,000 with an origination fee of 2 points due upfront. The mortgage term is 30 years and the mortgage rate is fixed at 4%. What is the cost of the origination fee in dollar terms?? How ..
What would be weight used for equity in the computation : OMG Inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,000 bonds. Suppose the common shares are selling for $15 per share, the preferred shares are selling for $24 per share, and the bonds ar..
Determine the distribution in order to minimize total cost : MPL Project- Pharmaceutical Clinical Trial Distribution. Formulate the problem to determine the distribution in order to minimize the total cost. Please provide a mathematical description of the model
Review state legal and ethical guidelines for psychologists : To prepare: Review your state's legal and ethical guidelines for psychologists. Compare these guidelines to the codes of ethics set forth by the APA and the AP-LS

Reviews

Write a Review

Financial Management Questions & Answers

  Direct installment loan differs from an indirect installment

Explain how a direct installment loan differs from an indirect installment loan.

  Penetrate the comp-xm market

Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a broad cost leader strategy. from last year's reports which company would be the strongest competitor?

  Determine which form of contracting benefit your business

Image your small business that produces very small remote control aircraft capable of long sustained flights. You are ready to expand your business by competing for Department of Defense (DoD) contracts.

  MIRR for projects-indicate the correct adopt-reject decision

The following project is being considered in this year's capital budget. Calculate the NPV , the IRR and the MIRR for the projects and indicate the correct adopt-reject decision. Your firm's cost of capital is 10%.

  Explain why the yield on bond that trades

Explain why the yield on a bond that trades at a discount exceeds the bond’s coupon rate. Why are longer-term bonds more sensitive to changes in interest rates than shorter term bonds? Does the bond’s YTM determine its price or does the price determi..

  Estimate value of property using direct capitalization

You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $68,000. Four highly similar and competitive apartment properties within two blocks of the subject property have sold in the pas..

  Consider financial statement information-ending inventory

Consider the following financial statement information for the Amaryliss Corporation: Item Beginning Ending Inventory $10,082 $10,880 Accounts receivable 5,351 5,881 Accounts payable 5,652 5,993 Net sales $139,003 Cost of goods sold 86,813

  Capital structures-all-equity plan and levered plan

DAR Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 175,000 shares of stock outstanding.

  Negotiated a new labor contract

Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cute. Labor costs will go from $2.90 to $3.50 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb t..

  What is amount of the net deductible casualty gain or loss

Determine the net deductible casualty gain or loss for Jan Brady when her adjusted gross income was $43,000 in 2016 before the following occured: All casualties were nonbusiness, personal-use property and none occured in a federally declared disaster..

  State transactions that involve a series of equal cash flows

Determining present value, relate to compounding, as used in determining future value? How are you able to apply discounting and compounding concepts to lump sum transactions versus transactions that involve a series of equal cash flows?

  What impact would the new capital structure

Seattle Health Plans currently uses zero-debt financing. Its operating income (EBIT) is $1 million, and it pays taxes at a 40% rate. It has $5 million in assets and, because it is all-equity financed, $5 million in equity. What impact would the new c..

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