Reference no: EM1314742
Calculation of value of common stock and yield on common stock.
1. Expected Rate of Return on a Corporate Bond
Assume that Intel Corporation's $1000.00 face value 9 percent coupon rate bond matures in 10 years and sells for $1,100.00. If you purchase the bond for $1,100.00 and hold it to maturity, what will be your average annual rate of return on the investment?
2. Common Stock Valuation per share
China S. Construction Inc. is in the business of building electrical power plants in the eastern United States. Jack Godell and the rest of the board members of the firm just announced a $4 per share dividend on the corporation's common stock to be paid in one year. Because the quality of some of its recent projects is under attack by investigative television reporters, the expected constant dividend growth rate is only estimated to be 1 percent. The required rate of return for similar stocks in this industry is 16 percent.
a. What is the present value of the expected dividends from one share of China S. Construction's common stock?
b. What is the stock's dividend yield (D1/P0) Note: The 1 and 0 are smaller numbers, could not be typed that way though.
3. Yield on Common Stock
The current listed price per share of a certain common stock is $15. The cash dividend expected from the corporation in one year is $2 per share. All market research indicates that the expected constant growth rate in dividends will be 4 percent per year in future years. What is the rate of return on this investment that an investor can expect if shares are purchased at the current listed price?
|
Calculating the socially efficient level of output
: Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.
|
|
What is the average induced emf in inductor during this time
: How many joules of kinetic energy does a 750-{rm kg} automobile travelling at the typical highway speed of 65 {rm{ mi/h}} have.
|
|
Given number of degrees of freedom
: Whenever the calculated value of t is equal to or greater than the tabled value of t, for a given number of degrees of freedom, then
|
|
Decision of a risk neutral consumer
: How much will this consumer be willing to pay for the product if the firm offering the reliable product includes warranty that will protect the consumer? Explain.
|
|
What is the present value of the expected dividends
: What is the present value of the expected dividends from one share of China S. Construction's common stock and What is the stock's dividend yield (D1/P0) Note: The 1 and 0 are smaller numbers, could not be typed that way though.
|
|
What is the kinetic energy of a carbon atom
: A small boat is moving at a velocity of 3.35 m/s while it is accelerated by a river current perpendicular to the initial direction of motion. If current acceleration is 0.750 m/s^2, what will the new velocity of the boat be after 33.5 s.
|
|
Bundling pricing for three types of consumers
: You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently.
|
|
Calculation of number of stock outstanding
: Calculation of number of stock outstanding - How many shares of common stock are outstanding and What was the average issue price per share of preferred stock?
|
|
What is the shear stress on the bolts
: A box weighing 300N is shoved across the floor of an apartment by a force of 400 N exerted downward at an angle of 35.2° below the horizontal. If the coefficient of kinetic friction between the box and the floor is 0.540, how long does it take to mov..
|