What is the market price of a share of stock for a firm

Assignment Help Finance Basics
Reference no: EM13880422

1) What is the holding period return to an investor who bought 100 shares of Charter Oil nine months ago for $36 a share, received two $50 dividend checks, and sold the stock today at $38 a share?

2) What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4?

3) A firm's current ratio is 1.5, and its quick ratio is 1.0. If its current liabilities are $10,000, what are its inventories?

4) Determine the amount you would be wiling to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate of return.

5) Your grandparents put $1,000 into a saving account for you when you were born 30 years ago. This account has been earning interest at a compound rate of 7%. What is its value today?

6) An insurance company offers you and end of year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9%. What is the most you would be willing to pay today for this annuity?

7) 1st bank offers you a car loan at an annual interest rate of 10% compounded monthly. What effective annual interest rate is the bank charging you?

8) Compute the risk premium for the stock of Omega Tools if the risk free rate is 6%, the expected market return is 12%, and Omega's stock has a beta of .8.

9) Elephant Company common stock has a beta of 1.2. The risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the security.

 

Reference no: EM13880422

Questions Cloud

Find budget allocation that generates greatest total benifit : Find the budget allocation that generates the greatest total benefits
Read and evaluate the article- diagnosed with breast cancer : Using this checklist read and evaluate the article "Diagnosed with Breast Cancer While on a Family History Screening Programme: An Exploratory Qualitative Study."
Machines manufactured the equipment : International Machines manufactured the equipment at a cost of $200,000. The equipment has a fair value of $260,000. Appropriate adjusting entries are made quarterly.
Prepare a classified balance sheet for spot lighter inc : Given the transactions in M2- 9 (including the sample), prepare a classified balance sheet for Spot-lighter, Inc., as of January 31. a. (Sample) Borrowed $ 3,940 from a local bank on a note due in six months. b. Received $ 4,630 cash from investors a..
What is the market price of a share of stock for a firm : What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4?
Apply project management skills : The goal of this project, is to apply project management skills to a real-world situation. To accomplish this goal, you will conduct an in-depth analysis of the application of project management concepts in the provided case study.The analysis should..
Explain the development and passage pof the occupational : 1.Explain the development and passage pof the Occupational health and safety act (OSH Act) What were some of the primary reasons behind the passage ?2. Compare and contrast how the present  day rate of accidental work deaths compares with the early 1..
International machines manufactured the equipment : 1.Manufacturers Southern leased high tech electronic equipment from International Machines on January 1, 2013.
Determine the velocity and thermal boundary layer : For each fluid, determine the velocity and thermal boundary layer thicknesses at a distance of 40 mm from the leading edge.

Reviews

Write a Review

Finance Basics Questions & Answers

  What was reconstruction

When you respond to the questions, don't write your responses in the form of a study sheet, but instead try to create a holistic essay that features an introduction and conclusion that ties the information and studies together. Just use these questio..

  If the annually compounded interest rate is 12 use the rule

here are two useful rules of thumb. the rule of 72 says that with discrete compounding the time it takes for an

  What is the value of the option to delay the project

The project's cost and expected annual cash flows would be the same whether the project is delayed or not. The project's WACC is 11.0%. What is the value (in thousands) of the option to delay the project?

  Computation net present value and payback period

Computation net present value and payback period and draw the net present value profiles for both projects on the same set of axes

  Once you have identified the 3 stocks you need to find the

you need to find alice 3 stocks to invest in from different segments of the market. the stocks should come from 3

  Fair value accounting for goodwill.

Fair value accounting for goodwill. Under FAS141R, determine the amount of Goodwill that "the acquiring company" enters on its balance sheet in the following situation:

  Katz corporation has issued 400000 shares of common stock

katz corporation has issued 400000 shares of common stock and holds 20000 shares in treasury. the charter authorized

  What was your total real return on investment

If the inflation rate was 4.0 percent over the past year, what was your total real return on investment?

  Compare the competitive price charged and quantity produced

a compare the competitive price charged and quantity produced under perfect competition and monopoly. other than

  Capital budgeting for telecommunications services

Capital Budgeting for Telecommunications Services

  A company pays a dividend a 2 per share d02 it is

a company pays a dividend a 2 per share d02. it is estimated that the companys dividend will grow at a rate of 20 for

  If you are going to be receiving annuity payments which

if you have to choose between 2 equally risk annuities each paying 5000 per year for 8 years. one is an annuity due

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