What is the average monthly return

Assignment Help Financial Management

Reference no: EM131980529

1. Average Return The past five monthly returns for K and Company are 5.45 percent, 5.62 percent, -.95 percent, -.25 percent, and 10.20 percent. What is the average monthly return?

A. 1.673%

B. 4.014%

C. 4.114%

D. 1.714%

2. Changes in Growth and Stock Valuation Consider a firm that had been priced using a 12.00 percent growth rate and a 16.00 percent required rate. The firm recently paid a $2.00 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 14.00 percent rate. How much should the stock price change (in dollars and percentage)?

A. $58.00, 104.00%

B. $50.00, 1.00%

C. $58.00, 1.04%

D. $50.00, 100.00%

Reference no: EM131980529

Questions Cloud

What is the effective annual interest rate earned : What is the effective annual interest rate that you pay on the loan? What is the effective annual interest rate earned by your friend?

You only pay interest and never finish paying off full debt : For what monthly payment, you only pay interest and never finish paying off the full debt?

Assuming the payments grow in geometric progression : Future value for an annuity-due, assuming the payments grow in a geometric progression.

How much would the cost reduction improve the ROE : Assets, total invested capital, sales, and the debt to capital ratio would not be affected. By how much would the cost reduction improve the ROE?

What is the average monthly return : The past five monthly returns for K and Company are 5.45 percent, 5.62 percent, -.95 percent, -.25 percent and 10.20 percent. What is the average monthly return

What is the required return for market : Required Return If the risk-free rate is 8.1 percent and the market risk premium is 2.2 percent, what is the required return for the market?

The rate of return on your initial margin deposit : What is the dollar change in your account and the rate of return on your initial margin deposit?

Calculate both the payoff and profit for each option : Calculate both the payoff and profit for each option, to both the long and short positions, based on stock prices at expiration of $37 and $44.

About the stock price future movement : What would be a simple options strategy using a put and call to exploit your conviction about the stock price’s future movement?

User Account

All Pages