What is the value of this stock at the beginning of year

Assignment Help Financial Management
Reference no: EM131989790

1. You are managing a fund with an expected rate of return of 11% and a standard deviation of 27%. The T-bill rate is 3%. Your client chooses to invest 80% of his portfolio in your fund and the rest in a T-bill money market fund. What is the expected return of your client's portfolio? Enter your answer as a decimal number, rounded to three decimal places.

2. Waller Co. paid a $0.146 dividend per share in 2000, which grew to $0.312 in 2012. This growth is expected to continue.

What is the value of this stock at the beginning of 2013 when the required return is 14.6 percent? (Round the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.)

Reference no: EM131989790

Questions Cloud

Equal to the expected yields if interest rates change : For the coming year, what is the expected capital gains yield? Will the actual realized yields be equal to the expected yields if interest rates change?
What rate of return would she have earned for past year : If Janet sold the bond today for $1,086.29, what rate of return would she have earned for the past year?
Decide to open an individual retirement account : You decide to open an individual retirement account (IRA) at your local bank that pays 8 %/year compounded annually.
The time value of the call and put options : Calculate the intrinsic value and the time value of the call and put options (in US cents).
What is the value of this stock at the beginning of year : What is the value of this stock at the beginning of 2013 when the required return is 14.6 percent?
Calculate the internal rate of return-net present value : Calculate the Internal Rate of Return (IRR). Calculate the Net Present Value (NPV) at the following required rates of return: (a) 3% (b) 4% (c) 8% (d)9%
What is yield to maturity on this bond : What is the yield to maturity on this bond? If the yield to maturity on this bond increased to 5.20 % , what would the new price be?
Discuss the key features of arbitration and meditation : "Arbitration". Discuss the key features of arbitration and meditation, explain how they differ and provide an example of cases for which each is suited.
What is the cost of haroldson inc. new common stock : Flotation costs on new stock sales are 5% of the selling price. What is the cost of Haroldson Inc.'s new common stock?

Reviews

Write a Review

Financial Management Questions & Answers

  Which account represents the cumulative earnings of the firm

Which account represents the cumulative earnings of the firm since its formation, minus dividends paid?

  Calculate monthly payments on this five year loan

Ganley Ford offers to sell your company a new Lincoln Navigator at factory list price, (Hybrid conversion kit included) and, of course, outstanding financing. The list price is $40,000 . The special rate is 7.65%. Calculate monthly payments on this 5..

  What would be before-tax component cost of debt

KatyDid Clothes has a $110 million (face value) 25-year bond issue selling for 102 percent of par that carries a coupon rate of 8 percent, paid semiannually. What would be Katydid’s before-tax component cost of debt?

  Calculate the incremental rate of return

Calculate the incremental rate of return and (b) determine which alternative is better at a MARR of 6% per year over a 20-year study period.

  Calculate both the payback period and simple rate of return

Calculate both the Payback Period, and the Simple Rate of Return for this proposed investment,

  Receivables investment

Medwig Corporation has a DSO of 27 days. The company averages $8,750 in credit sales each day. What is the company's average accounts receivable? Round your answer to the nearest dollar.

  Factor loading on the fundamental factor of D-E ratio

What would be its factor loading on the fundamental factor of D/E ratio?

  Will purchase a new kind of digging machine

Tough Concrete, a construction company, will purchase a new kind of digging machine in 3 years.

  Savings account today that earns annual interest rate

You placed $1,842 in a savings account today that earns an annual interest rate of 19.60 percent compounded annually. How much will you have in this account at the end of 32 years? Assume that all interest received at the end of the year is reinveste..

  Generate attractive returns in the future

1. Mary decides to set aside a small part of her wealth for investment in a portfolio that has greater risk than her previous investments because she anticipates that the overall market will generate attractive returns in the future. She assumes t..

  What options could the imf recommend to correct

Leticia is a small country that is experiencing a deficit in its balance of payments.- What options could the IMF recommend to correct the imbalance in Leticia's balance of payments?

  What is revenue reported in the fund financial statement

What is the revenue reported in the Fund Financial Statement for the period ended 12/31/2017?

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