Reference no: EM132918120

Questions -

Q1. Luca Corporation has announced that it plans on offering $3.2 a share dividend at the end of this year and then issuing a final liquidating dividend of $4.8 a share at the end of next year You own 3,200 shares of this firm and your required rate of return on this security is 18 percent. What is the value of one share of this stock to you today?

Q2. Aaron owns shares of Metro Productions preferred stock which provides her with a handsome 14.3 percent return. The stock is currently priced at $45.45 a share. What is the amount of the dividend per share?

Q3. EB Entertainments has 270,000 shares of stock outstanding with a market price of $28 a share The firm just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split?

Q4. The expected return on Bay Industrial stock is 27.40 percent while the expected return on the market is 13.50 percent. The stock's beta is 2.50. Find out the risk-free rate of return.

Q5. Prithvi Corporation has a profit margin of 18 percent, a total assets turnover of 0.96, and an equity multiplier of 1.35. According to the Du Pont identity analysis, what is the return on equity of the firm?