What is the fair present value of the stock

Assignment Help Financial Management
Reference no: EM131896690

1. A preferred stock from Hecla Mining Co. (HLPRB) pays $2.80 in annual dividends. If the required rate of return on the preferred stock is 6.8 percent, what is the fair present value of the stock? (Round your answer to 2 decimal places. (e.g., 32.16))

2. How much money would you have to deposit today in order to have $3,000 in five years if the discount rate is 10 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131896690

Questions Cloud

What would be the rate of return if the vending machines : What would be the rate of return if the vending machines were to last indefinitely?
Sales increase-what is its self-supporting growth rate : How large a sales increase can the company achieve without having to raise funds externally—that is, what is its self-supporting growth rate?
Dividend-discount model predict highline stock should sell : what price does the dividend-discount model predict Highline stock should sell?
Non-callable bonds to finance its business expansion : TSU Farms sold $50,000,000 worth of 8.0% coupon rate, 10-year maturity, $1000 par value, AA-rated; non-callable bonds to finance its business expansion
What is the fair present value of the stock : If the required rate of return on the preferred stock is 6.8 percent, what is the fair present value of the stock?
Current rate for two-year treasury security : what should be the current rate for a two-year Treasury security?
Corporation has previously issued corporate bonds : Suppose that XYZ Corporation has previously issued corporate bonds, preferred stock and common stock.
Company stock will trade for one year from today : what price would the CAPM predict that the company’s stock will trade for one year from today?
Net patient service revenue operating expenses salaries : Contractual allowance Net patient service revenue Operating expenses Salaries and wages Employee benefits Supplies Purchased professional services Etc.

Reviews

Write a Review

Financial Management Questions & Answers

  Financial ratio is one financial value

A ratio is one value expressed to another. A financial ratio is one financial value or measurement expressed to another. There are about 20 financial ratios commonly used to assess one company's performance compared to another company in the same ind..

  Calculate cost of setting up the butterfly spread position

Use the DerivaGem software to calculate the cost of setting up the butterfly spread position. -  Show that the cost is the same if European put options are used instead of European call options.

  Leverage can be the least expensive form of capital

It is noted that initially, leverage can be the least expensive form of capital. However, if potential lenders feel a firm is overly leveraged, they may charge a punitive rate, or refuse to lend all together. This can be disastrous if a firm needs to..

  What will happen to the banks net interest income

If a bank has 10 billion dollars of 1-year loans and 40 billion dollars of 5-year loans, which are financed by 30 billion dollars of 1-year deposits and 20 billion dollars in 5-year deposits. If interest rates increase by 1 percent every year for the..

  According to a geometric brownian motion process

The stock price changes according to a geometric Brownian Motion process, with time measured in months and coefficients µ=0 s=2. Calculate the probability that:

  What is the percentage change in bond price as predicted

what is the percentage change in the bond's price as predicted by the duration formula?

  Highest potential loss from this position

The call premium is $5.10 per share and the put premium is $8.65 per share. Your highest potential loss from this position is _____.

  Ratios are measures of firm liquidity

Which of the following ratios are measures of a firm’s liquidity?

  Ensure ethical operation of the business

Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how limited access can satisfy the purpose of internal control and (2) provide an example of how this control could be i..

  How much is in the account after the final payment

If the account earns 21% per period, how much is in the account after the final payment?

  Calculate the stocks coefficient of variation

Calculate the stock's standard deviation. Calculate the stock's coefficient of variation.

  About the money and banking

How have financial innovations the allow banks to sell off home loans increased the liquidity of home mortgages since the late 1970s?

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