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Finance
Date
Nov 24, 2024
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Uploaded by Joannelulu
A
preferred
stock
from
DLC
pays
$5.10
in
annual
dividends.
If
the
required
return
on
the
preferred
stock
is
121
percent,
what
is
the
value
of
the
stock?
Multiple
Choice
Q
$6.31
.
$4215
Q
$240.97
O
$47.25
Calculator
=
Standard
0}
5.1+0.121=
42.14876033057851
%
+L
M+
CE
M-
Ax
MS
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Related Questions
4
t of
estion
Determine the market value of a Digicel Stock if Do = 3.00, Ks = 13%, G = 6%.
Select one:
O a.
O b.
O c.
O d.
$45.43
$30.29
$53.00
$3.18
arrow_forward
You have the following information:
Stock
Shares Outstanding
BOY Price
EOY Price
L
3,000
$ 15
$ 28
K
57,000
$ 31
$ 35
You want the beginning price-weighted index of these two stocks to be 500. Given this, what is the ending index value?
Multiple Choice
A. 408.33
B. 487.08
C. 511.19
D. 576.09
E. 612.24
arrow_forward
A preferred stock is expected to pay a constant quarterly dividend of $1.25 per quarter into the future. The required rate of
return, Rs, on the preferred stock is 13.5 percent. What is the fair value (or price) of this stock?
3
E
Multiple Choice
$37.04
$24.36
$52.36
$18.65
None of these choices are correct
Q Search
$
4
R
%
5
T
*
D
00
8
arrow_forward
D
Given the following data and assume the margin listed, what will be your equity position in the stock?
Shares
Price
Margin
New Price
O 17%
O 40%
2500
O 100%
$10
50%
O None of these are correct
O 25%
$6.0
arrow_forward
On a particular date, FedEx has a stock price of $88.24 and an EPS of $7.36. Its competitor, UPS, had an EPS of $0.30.
What would be the expected price of UPS stock on this date, if estimated using the method of comparables?
Question content area bottom
Part 1
A.$5.40
B. $7.19
C.$8.00
D.$3.60
arrow_forward
Q1
arrow_forward
What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10?
a.
8.20%
b.
11.34%
c.
8.82%
d.
12.20%
arrow_forward
Consider a stock with a current dividend D0=$4 and a required rate of return R=12%.
The stock trades at a price P0=$40. What dividend growth rate g must investors expect for this price to reflect the stock's fundamental value?
g = _ % (answer a number with 1 decimal, e.g., 1.2)
arrow_forward
e Home
Cost of preferred stock Determine the cost for the following preferred stock. (Click on the icon here in order to copy the contents of the data table below into a
spreadsheet.)
ase Options
Sale price
$105.60
Par value
Flotation cost
Annual dividend
$110.00
$8.80
11%
dar
The cost of preferred stock is
%. (Round to two decimal places.)
Enter your answer in the answer box.
10:5
P Type here to search
4/7/2
に」 ーに
insert
ト
10
arrow_forward
What is the price of a stock at the end of Year 1 (P1) if the dividend for Year 2 (D2) is $5, the price at the end of Year 2 (P2) is $20, and the discount rate is 10 percent? (Round your answer to two decimal places.)
Multiple choice question.
$22.73
$25.00
$19.73
$18.18
arrow_forward
The return of stock B is __%
The volatility of stock A is __%
The volatility of stock B is __%
arrow_forward
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 7% of par, and a current market price of (a) $51, (b) $89, (c) $109, and (d) $137? Round your answers to two decimal places.
a %
b %
c %
d %
arrow_forward
Help please with rate of return answer
arrow_forward
D0 = $1.75, g = 3.6%, P0 = $32, find the stock return
9.27%
9.59%
9.18%
9.13%
arrow_forward
Report the beta of each stock and demonstrate a clear understanding of the concept of market efficiency.
arrow_forward
Use the portion of the stock table shown below to answer the questions that follow. Round dollar amounts to the
nearest cent when necessary.
YTD
%CHG
52-
HI
Week
LO STOCK DIV
YLD
%
VOL
100s CLOSE
NET
CHG
4.8 32.63 16.29 A1 0.99 3.7 795 26.59 0.43
3 46.98 31.94 B1 ... 725 38.76 –0.13
(i) If you own 610 shares of A1, what dividend do you receive this year?
(ii) What was the price of a share of stock B1 at the close of the trading day yesterday?
arrow_forward
H5.
A stock has had the following year-end prices and dividends: Year Price Dividend 1 $40 — 2 $55 $1.10 3 $60 $1.20 4 $70 $1.30 The geometric average return for the stock is ______%.
Group of answer choices
23.
45
20
28.
35
22.
86
33
.41
Show proper step by step calculation and explain with details
arrow_forward
2. Suppose a stock had an initial price of $62 per share, paid a dividend of $2.50 per share
during the year, and had an ending share price of $72. What was the dividend yield and the
capital gains yield?
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arrow_forward
How would I complete this?
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please help with this question thanks
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Related Questions
- 4 t of estion Determine the market value of a Digicel Stock if Do = 3.00, Ks = 13%, G = 6%. Select one: O a. O b. O c. O d. $45.43 $30.29 $53.00 $3.18arrow_forwardYou have the following information: Stock Shares Outstanding BOY Price EOY Price L 3,000 $ 15 $ 28 K 57,000 $ 31 $ 35 You want the beginning price-weighted index of these two stocks to be 500. Given this, what is the ending index value? Multiple Choice A. 408.33 B. 487.08 C. 511.19 D. 576.09 E. 612.24arrow_forwardA preferred stock is expected to pay a constant quarterly dividend of $1.25 per quarter into the future. The required rate of return, Rs, on the preferred stock is 13.5 percent. What is the fair value (or price) of this stock? 3 E Multiple Choice $37.04 $24.36 $52.36 $18.65 None of these choices are correct Q Search $ 4 R % 5 T * D 00 8arrow_forward
- D Given the following data and assume the margin listed, what will be your equity position in the stock? Shares Price Margin New Price O 17% O 40% 2500 O 100% $10 50% O None of these are correct O 25% $6.0arrow_forwardOn a particular date, FedEx has a stock price of $88.24 and an EPS of $7.36. Its competitor, UPS, had an EPS of $0.30. What would be the expected price of UPS stock on this date, if estimated using the method of comparables? Question content area bottom Part 1 A.$5.40 B. $7.19 C.$8.00 D.$3.60arrow_forwardQ1arrow_forward
- What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10? a. 8.20% b. 11.34% c. 8.82% d. 12.20%arrow_forwardConsider a stock with a current dividend D0=$4 and a required rate of return R=12%. The stock trades at a price P0=$40. What dividend growth rate g must investors expect for this price to reflect the stock's fundamental value? g = _ % (answer a number with 1 decimal, e.g., 1.2)arrow_forwarde Home Cost of preferred stock Determine the cost for the following preferred stock. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) ase Options Sale price $105.60 Par value Flotation cost Annual dividend $110.00 $8.80 11% dar The cost of preferred stock is %. (Round to two decimal places.) Enter your answer in the answer box. 10:5 P Type here to search 4/7/2 に」 ーに insert ト 10arrow_forward
- What is the price of a stock at the end of Year 1 (P1) if the dividend for Year 2 (D2) is $5, the price at the end of Year 2 (P2) is $20, and the discount rate is 10 percent? (Round your answer to two decimal places.) Multiple choice question. $22.73 $25.00 $19.73 $18.18arrow_forwardThe return of stock B is __% The volatility of stock A is __% The volatility of stock B is __%arrow_forwardWhat will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 7% of par, and a current market price of (a) $51, (b) $89, (c) $109, and (d) $137? Round your answers to two decimal places. a % b % c % d %arrow_forward
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ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
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