What is your expected return

Assignment Help Financial Management
Reference no: EM131501144

Suppose you own 500 shares of XYZ Co's preference shares. The preference shares currently sell for $3.80 per share and pays annual dividends of $0.75 per share.

a) What is your expected return?

b) If you require an 8% return, given the current price, should you sell or buy more preference shares?

Reference no: EM131501144

Questions Cloud

What is the future value compounded quarterly : What is the future value of $1,100, placed in a savings account for four years if the account pays 6.00%, compounded quarterly?
Significant amount of annual disposable income : Based on casual observation, my sense is that out biggest shopper segment is established adults above 40 with a significant amount of annual disposable income.
Federal governments take to keep drug prices down : What can state and federal governments take to keep drug prices down? Why are state governments interested in keeping prescription prices lower?
What is the value of the ordinary shares : What is the value of the ordinary shares if you require a 12% return?
What is your expected return : If you require an 8% return, given the current price, should you sell or buy more preference shares? What is your expected return?
Sampling distribution of the proportions : Find the standard deviation of the sampling distribution of the proportions?
What is the opportunity cost of not taking the cash discount : What is the opportunity cost of not taking the cash discount?
Compute the test statistic : The table records the number of strikes out of 50 that each player threw. Use a significance level of 0.05
Compare your two companies using the financial statements : Compare and contrast your two companies using the financial statements for the two firms and the accumulated data and analysis completed so far.

Reviews

Write a Review

Financial Management Questions & Answers

  Identify two or three favorable economic-political factor

Identify two or three favorable economic and political factors as to why an American-based MNC would be attracted to offering local currency debt in Mexico. Assume the MNC needs to finance a capital project in that country.

  What is the market value of bond

Kinight issued a three year bond that pays a coupon rate of 4.71 percent. coupon payments are made semiannually. given the market rate of interest of 4.98 percent what is the market value of the bond?

  The disadvantage of the irr method is that

The disadvantage of the IRR method is that

  An immunization strategy protects a portfolio from

An immunization strategy protects a portfolio from:

  What is the firms weighted average cost of capital

If Ty's yield to maturity on bonds is 7.5% and investors require a 15% return on Ty's common stock, what is the firm's weighted average cost of capital?

  List some possible sources of personal loans

List some possible sources of personal loans. What precautions should be taken with loans from family members or friends?

  The value of the countrys current account balance

For each of the given changes, has the value of the country's current account balance increased, decreased, or stayed the same?

  Do the parties have a contract

Great Value, is a local grocery store, Great Value sells customized cakes. Do the parties have a contract?

  What must expected return on the market be

A stock has an expected return of 11.6 percent, its beta is .91, and the risk-free rate is 5.8 percent. What must the expected return on the market be?

  What is the present value of the dividend expected

Common stock of Fairfax Paint is currently priced at 71.89 dollars per share. The stock is expected to pay annual dividends that are expected to grow by 3.81 percent forever. The next dividend is expected in 1 year and the expected annual return for ..

  What is the distinction between interest rates and return

What is the distinction between interest rates and return? State the hypothesis of the theory of portfolio choice? State the theory of supply and demand in the bond?

  Calculate the annual return on the mutual funds

Suppose an individual invests $40,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 4.4 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating e..

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