What will be the nominal rate of return on a perpetual

Reference no: EM13619278

1. You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.20. You are considering selling $100,000 worth of one stock with a beta of 0.80 and using the proceeds to purchase another stock with a beta of 1.50. What will the portfolio's new beta be after these transactions? Round your answer to two decimal places.

2. The Moore Corporation had operating income (EBIT) of $950,000. The company's depreciation expense is $237,500. Moore is 100% equity financed, and it faces a 35% tax rate.

What is the company's net income? What is its net cash flow?

3.What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 9% of par, and a current market price of (a) $52, (b) $86, (c) $96, and (d) $147? Round the answers to two decimal places.

Reference no: EM13619278

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