What was your real return

Assignment Help Financial Management
Reference no: EM132061208

1. An investment offers a 15.0 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 5.5 percent. What does Bill believe the inflation rate will be over the next year?

2. Say you own an asset that had a total return last year of 10.5 percent. If the inflation rate last year was 4 percent, what was your real return?

3. A share of stock with a beta of 0.75 sells for $50. Investors expect the stock to pay a year-end dividend of $2. If the stock is perceived to be fairly priced today, what must be investor's expectation of the price of the stock at the end of the year?

Reference no: EM132061208

Questions Cloud

Insurance company pay for all damages : The bodily damage to Johnny was $50,000 and $75,000 to the driver. How much money did Johnny’s insurance company pay for all damages?
For investors in tax deferred investment vehicles : For investors in tax deferred investment vehicles such as a 401-K retirement savings plans, what aspect of risk is most important?
Ex-dividend date is entitled to the dividend : Anyone holding a stock before its ex-dividend date is entitled to the dividend.
What coupon rate should the company set on its new bonds : What coupon rate should the company set on its new bonds if it wants them to sell at par?
What was your real return : Say you own an asset that had a total return last year of 10.5 percent. If the inflation rate last year was 4 percent, what was your real return?
What is company target debt-equity ratio : The tax rate is 34 percent. What is the company's target debt-equity ratio?
State income tax on investment income : In both cases assume you are in the 25% federal marginal tax bracket and there is no state income tax on investment income.
What must coupon rate be on these bonds : The bonds make semiannual payments. What must the coupon rate be on these bonds?
Fixed-rate loan amortizes : A monthly amortizing, $ 800,000 fixed-rate loan amortizes fully in 30 years and has a contract rate of 6%. What is the EBC if 5% pre-pay penality are applied?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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