Homework 4 Finance
docx
keyboard_arrow_up
School
Seton Hall University *
*We aren’t endorsed by this school
Course
2201
Subject
Finance
Date
Jan 9, 2024
Type
docx
Pages
4
Uploaded by madelynramos345
Apple Stock
1. What is the current price of the stock?
The current price of the stock is $176.65.
2. Did the stock pay a dividend since the last assignment? If so, how much was the dividend
per share?
The stock did pay a dividend of $0.24 per stock.
3. Considering both capital gains/losses and dividends, what is the current value of your
investment? What was your percent return on this investment?
The current value of my investment in Apple is -$118.20, as my initial investment of
$34,965.53 decreased to $34,800.05 but had a dividend of $47.28. The percent return on this
investment was -0.34%.
Current- Original Invest.: 34800.05-34965.53= -165.48
Dividend: 197 shares * 0.24= $47.28
Percent Return: (-165.48+47.28)/34965.53= -0.00338= -0.34%
4. What factors do you think caused the stock to go up or down in value?
I think a factor that caused the stock to go down in value was due to the drop in sales of
iPhone and Mac products. Even though the drop of the new iPhone 15 should increase stock
prices, the increase in price of the new phones has steadily been deterring customers from
upgrading their phones each year.
5. Using one-year of daily returns calculate the volatility and beta of the stock. What does
this information tell you about the stock’s risk profile? (Note: Please submit your
calculations. I want to see how you calculated your results, not just the final answer.)
6. If you knew the stock’s volatility and beta prior to the previous assignment, would you
still have invested in this stock? Why or why not?
If I knew this prior to the previous assignment, I would not have invested in Apple as
their volatility is 20.15. This makes it more risky to invest in as it is known for fluctuating.
Disney Stock
1. What is the current price of the stock?
The current price of the stock is $85.07.
2. Did the stock pay a dividend since the last assignment? If so, how much was the dividend
per share?
The stock did not pay a dividend since the last assignment.
3. Considering both capital gains/losses and dividends, what is the current value of your
investment? What was your percent return on this investment?
The current value of my investment in Disney is $1,026.66, as my initial investment of
$39,977.08 increased to $41,003.74. The percent return on this investment was 2.57%.
Current- Original Invest.: 41003.74-39977.08= 1026.66
Dividend: No dividend
Percent Return: (1026.66+0)/39977.08= 0.02568= 2.57%
4. What factors do you think caused the stock to go up or down in value?
I believe the factor that caused the stock for Disney to go up is that it is Disney’s 100-
year anniversary. During this anniversary Disney has constantly been pushing new merch and
promotions in relation to this celebration. This causes more customer attraction and in-turn more
reasons for investments.
5. Using one-year of daily returns calculate the volatility and beta of the stock. What does
this information tell you about the stock’s risk profile? (Note: Please submit your
calculations. I want to see how you calculated your results, not just the final answer.)
6. If you knew the stock’s volatility and beta prior to the previous assignment, would you
still have invested in this stock? Why or why not?
I would invest in Disney stock if I knew this previously, because their volatility is only
8.79. Compared to my other stock investments, this is fairly low meaning its less riskier to invest
in.
Google Stock
1. What is the current price of the stock?
The current price of the stock is $129.10
2. Did the stock pay a dividend since the last assignment? If so, how much was the dividend
per share?
The stock did not pay a dividend since the last assignment.
3. Considering both capital gains/losses and dividends, what is the current value of your
investment? What was your percent return on this investment?
The current value of my investment in Google is -$1,543.36, as my initial investment of
$25,039.56 decreased to $23,496.20. The percent return on this investment was -6.16%.
Current- Original Invest.: 23496.2-25039.56= -1543.36
Dividend: No dividend
Percent Return: (-1543.36+0)/25039.56= -0.06163= -6.16%
4. What factors do you think caused the stock to go up or down in value?
The factor that I believe caused the stock to go down for Google is because Google’s
cloud computing units have been largely under what analysts believe their revenue to be. The
company also lost market share to Microsoft.
5. Using one-year of daily returns calculate the volatility and beta of the stock. What does
this information tell you about the stock’s risk profile? (Note: Please submit your
calculations. I want to see how you calculated your results, not just the final answer.)
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
6. If you knew the stock’s volatility and beta prior to the previous assignment, would you
still have invested in this stock? Why or why not?
If I knew this prior to the previous assignment, I would not have invested in Google as
their volatility is 18.43. This makes it riskier to invest in as it is known for fluctuating.
7. What did you learn from these assignments?
After these assignments I learned that investing in stocks is very tricky. Being able to
understand a company’s volatility is important as it can cause you to make or lose thousands of
dollars.
Related Documents
Related Questions
Please answer to question (b) is needed
arrow_forward
BASIC (Questions 1-18)
1. Calculating Returns Suppose a stock had an initial price of $87 per share,
paid a dividend of $2.15 per share during the year, and had an ending share
price of $98. Compute the percentage total return. What was the dividend
yield? The capital gains yield?
LO 1
arrow_forward
Suppose a stock you bought one year ago at $102.65 recently paid you a dividend of $3.17. You sold
the stock today for $104.00. What is your holding period return (HPR) in both decimal and % form
1.
(Sales Price Purchase Price) + Dividends
HPR
Purchase Price
% format
Or in
arrow_forward
Bhupatbhai
arrow_forward
The dividend yield of a stock is determined by dividing the expected dividend (D1) by Blank______.
Multiple choice question.
the growth (g)
retained earnings
the discount rate (r)
the current stock price (P0)
arrow_forward
1. A stock has had the following year-end prices and dividends:
Dividend ($)
Year
1
2
3
4
5
6
Price ($)
93.75
94.42
95.5
93.24
94.65
97.9
1.38
1.36
1.72
1.76
1.95
What is the geometric average return for the stock? Answer as a percentage to two decimals (if
you get -0.0435, you should answer -4.35).
arrow_forward
What is the stock's current price on these financial accounting question?
arrow_forward
A stock that sold for $30 per share at the beginning of the year was selling for $78 at the end of the year. If the stock paid a dividend of $3.53 per share, what is the simple interest rate on the investment in this stock? Consider the interest to be the increase in value plus the dividend.
arrow_forward
Calculating Returns: Suppose a stock had an initial priceof $76 per share, paid a dividend of $1.95 per share duringthe year, and had an ending share price of $68. Compute thepercentage total return. What was the dividendyield? The capital gains yield?
arrow_forward
question 3
arrow_forward
Answer?? Financial accounting questions
arrow_forward
What is the stock's current price ?
arrow_forward
Please help
arrow_forward
What is the total percentage return for an investor who purchased a stock for $8.01,
received $2.02in dividend payments, and sold the stock for $9.14? Please write
your answers as a percentage (e.g. .1234 should be written as 12.34)
arrow_forward
need help this accounting question
arrow_forward
What was the capital gains yield on these financial accounting question?
arrow_forward
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $56.
Required:
a. What is the total rate of return on the stock?
b. What are the dividend yield and percentage capital gain?
c. Now suppose the year-end stock price after the dividend is paid is $48. What are the dividend yield and percentage capital gain in this case?
A Required
What is the total rate of return for the stock?
B Required
What is the dividend yield and percentage capital gain?
C Required
Now suppose the year-end stock price after the dividend is paid is $48. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)
arrow_forward
1. The rate at which a stock's price is expected to appreciate (or depreciate) is called the
yield.
A. current
B. total
C. dividend
D. capital gains
2. The underlying assumption of the dividend growth model is that a stock is worth:
A. the present value of the future income that the stock generates.
B. the same amount to every investor regardless of his desired rate of return.
C. an amount computed as the next annual dividend divided by the market rate of retum.
D. an amount computed as the next annual dividend divided by the required rate of return.
3. The total rate of return earned on a stock is composed of which two of the following?
1. current yield
II. yield to maturity
III. dividend yield
IV. capital gains yield
A. I and II only
B. I and IV only
C. II and III only
D. III and IV only
4. Which one of the following correctly defines the constant dividend growth model?
A. R = (D₁ Po) + g
B. Po = (D₁R) + g
C. R=(Po Do) + g
D. Po = Do ] (R-g)
5. How much are you willing to pay for one…
arrow_forward
Need help with this question please answer
arrow_forward
(Calculating rates of return) The common stock of Placo Enterprises had a market price of
$9.96
on the day you purchased it just one year ago. During the past year the stock had paid a dividend of
$0.85
and closed at a price of
$11.55.
What rate of return did you earn on your investment in Placo's stock?
Question content area bottom
Part 1
The rate of return you earned on your investment in Placo's stock is
enter your response here%.
(Round to two decimal places.)
arrow_forward
The common stock of Placo Enterprises had a market price of $
9.11 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of $
1.16 and closed at a price of $
10.42. What rate of return did you earn on your investment in Placo's stock?
Question content area bottom
Part 1
The rate of return you earned on your investment in Placo's stock is
enter your response here
%. (Round to two decimal places.)
arrow_forward
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $2 per share and sells for $57.
Required:
a. What is the total rate of return on the stock?
b. What are the dividend yield and percentage capital gain?
c. Now suppose the year-end stock price after the dividend is paid is $43. What are the dividend yield and percentage capital gain in
this case?
arrow_forward
A stock has had the following year-end prices and dividends:
Year
Price
Dividend
1
$ 64.43
—
2
71.30
$ .62
3
77.10
.67
4
63.37
.73
5
73.31
.82
6
80.75
.89
What are the arithmetic and geometric returns for the stock?
arrow_forward
A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $6 per share and sells for $87. A. What is the total rate of return on the stock?
B. What are the dividend yield and percentage capital gain? C. Now suppose the year-end stock price after the dividend is paid is $72. What are the dividend yield and percentage capital gain in this case?
arrow_forward
How to solve this in excel?
arrow_forward
A stock had the following year-end prices and dividends: Year Price Dividend 0 $ 58.75 — 1 68.56 $ 1.14 2 61.78 1.33 3 70.20 1.49 What was the arithmetic average return for the stock?
arrow_forward
(a) Compute the expected book value per share at time 1.
(b) Compute the expected earnings per share of DTI at time 2.
(c) Compute the expected value of the ex-dividend stock price at time 2.
(d) Compute the expected value of the ex-dividend stock price at time 0.
(e) Compute the expected return (over a single-period) on the stock of DTI at time 0 (in %).
arrow_forward
Suppose a stock had an initial price of $86 per share, paid a dividend of $1.70 per share during the year, and had an ending share price
of $12.50. Compute the percentage total return. What was the dividend yield? What was the capital gains yield?
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you

Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Related Questions
- Please answer to question (b) is neededarrow_forwardBASIC (Questions 1-18) 1. Calculating Returns Suppose a stock had an initial price of $87 per share, paid a dividend of $2.15 per share during the year, and had an ending share price of $98. Compute the percentage total return. What was the dividend yield? The capital gains yield? LO 1arrow_forwardSuppose a stock you bought one year ago at $102.65 recently paid you a dividend of $3.17. You sold the stock today for $104.00. What is your holding period return (HPR) in both decimal and % form 1. (Sales Price Purchase Price) + Dividends HPR Purchase Price % format Or inarrow_forward
- Bhupatbhaiarrow_forwardThe dividend yield of a stock is determined by dividing the expected dividend (D1) by Blank______. Multiple choice question. the growth (g) retained earnings the discount rate (r) the current stock price (P0)arrow_forward1. A stock has had the following year-end prices and dividends: Dividend ($) Year 1 2 3 4 5 6 Price ($) 93.75 94.42 95.5 93.24 94.65 97.9 1.38 1.36 1.72 1.76 1.95 What is the geometric average return for the stock? Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).arrow_forward
- What is the stock's current price on these financial accounting question?arrow_forwardA stock that sold for $30 per share at the beginning of the year was selling for $78 at the end of the year. If the stock paid a dividend of $3.53 per share, what is the simple interest rate on the investment in this stock? Consider the interest to be the increase in value plus the dividend.arrow_forwardCalculating Returns: Suppose a stock had an initial priceof $76 per share, paid a dividend of $1.95 per share duringthe year, and had an ending share price of $68. Compute thepercentage total return. What was the dividendyield? The capital gains yield?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning

Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning