Reference no: EM133071730
1. If you buy Disney stock at $85/ share and sell it for $90/ share and they pay a $1 dividend during that month. What is the total return (expressed as a percent) in one month?
2. In your portfolio, you own Delta Air Lines and Coca-Cola Company stock in which you initially purchase ten shares of each stock at $85 and $30 respectively. At the end of a month, DAL is valued at $90 and KO is valued at $28. Assume, they don't pay a dividend.
What is the initial value of the investment?
What is the return (expressed as a percent) for Delta at the end of the first month?
What is the return (expressed as a percent) for Coke at the end of the first month?
3. You buy Disney stock at $80/ share. It's worth $85 at the end of the first year and $90 at the end of the second year. You decide to sell it at $90. No dividend is paid.
What is Disney's one-year return after the first year? (expressed as a percent)?
What is Disney's one-year return for the second year? (expressed as a percent)?
What is the annualized return or geometric average (it's a percent) for the two years?
4. Calculate the weighted average growth (as a percentage) of the portfolio holding Microsoft and Nike. The total investment is $15,000. The portfolio saw 5% growth on $10,000 and 15% growth on $5,000.
5. You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently 1.25%. Your broker has determined the following information about economic activity and Moore Corporation bonds:
Real risk-free rate = 0.75%
Default risk premium = 1.15%
Liquidity risk premium = 0.50%
Maturity risk premium = 1.75%
What is the fair interest rate on Moore Corporation's 30-year bonds?
6. A particular security's default risk premium is 2 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.5 percent. The security's liquidity risk premium is 0.25 percent and the maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security's equilibrium rate of return.
|
What will be the balance of your investment portfolio
: You invest $8,000 today and after two years you invest another $6,000. What will be the balance of your investment portfolio after three years
|
|
Government of the newly independent nation of simonistan
: The government of the newly independent nation of Simonistan is thinking about introducing laws about retail pricing. At the moment the three (3) choices being
|
|
Compute pv of difference between two alternatives
: You can purchase a car for $15,000. The dealer offers you the choice between $2,500 dollars cash back or a promotional 2.0% annual rate on a loan.
|
|
What amount will lenny pay for the t-note
: After holding the Treasury note for 60 days, Lenny sells it to another trader for $996. What amount will Lenny pay for the T-note
|
|
What is the total return in one month
: 1. If you buy Disney stock at $85/ share and sell it for $90/ share and they pay a $1 dividend during that month. What is the total return (expressed as a perce
|
|
Company return on equity
: Madonna, Inc. ROE last year was only 5%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 40%, which will result
|
|
Compute the average monthly return for intc
: The Stock Data below contains monthly data for several stocks and the S&P 500 Index (i.e., the market).
|
|
Prepare general journal entries for jimmy ltd
: Prepare general journal entries for Jimmy Ltd to record all the above events in 2020 for its investment in Fallon Ltd, using the equity method
|
|
Compute the firm annualized cost of equity
: Assume the current selling price of a firm's stock is: $72. Using the Excel data below, Dividend Data, compute the firm's annualized cost of equity using the G
|