5. Below is actual price and dividend data for three companies for each of seven months.сTime1234567Price57 3/459 7/859 3/855 1/256 1/45960 1/4ADividend0.7250.725Price333368368 1/2382 1/4386397 3/4392BDividend1.351.35Price106 3/4108 1/4124122 1/4135 1/2141 3/4165 3/4Dividend0.400.42a. Compute the rate of return for each company for each monthb. Compute the average rate of return for each companyc. Compute the standard deviation of the rate of return for each companyCompute the correlation coefficient between all possible pairs of securitiese. Compute the average return and standard deviation for the following portfoliosd.a. 2A + 2Bb. 12 A + ½ Cc. 2 B+%2Cd. 1/3 A + 1/3 B + 1/3 C

Rate of Return AnalysisThis analysis will assess the performance of three companies (A, B, and C)…

Answered: 5. Below is actual price and dividend…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $250,000 $225,000 $200,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 7% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 88,510 64,380 48,000 The 20Y7 net income was $25,250, and the 20Y6 net income was $17,500. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill…
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,340,000 Preferred dividends $76,000 Shares of common stock outstanding 80,000 Market price per share of common stock $132.72 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required.$fill in the blank 1 b. Determine the company's price-earnings ratio. Round to one decimal place.fill in the blank 2
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The market price for Microsoft Corporation closed at $101.57 and $85.95 on December 31, current year, and previous year, respectively. The dividends per share were $1.68 for current year and $1.56 for previous year. a. Determine the dividend yield for Microsoft on December 31, current year, and previous year. Round percentages to two decimal places. Current year fill in the blank 1% Previous year fill in the blank 2%
provide both answer please
Vertical Analysis Two income statements for Upward Company follow: Upward Company Income Statements For the Years Ended December 31 20Y5 20Y4 Fees earned $924,000 $784,000 Operating expenses 545,160 478,240 Income from operations $378,840 $305,760 a. Prepare a vertical analysis of Upward Company's income statements. Enter percents as whole numbers. Upward Company Income Statements For the Years Ended December 31 20Y5 Amount 20Y5 Percent 20Y4 Amount 20Y4 Percent Fees earned $924,000 100 % $784,000 100 % 545,160 0X % 478,240 X % Operating expenses X % $305,760 X % Income from operations $378,840
Questions: 1. Price-earnings ratio 2. Dividend payout ratio 3. Dividend yield ratio
The dividend yield ratio is: A. 0.12 B. 0.08 C. none of the choice is correct D. 0.40 E. 0.50
Please do not give solution in image format thanku
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $460,000 Preferred dividends $40,000 Shares of common stock outstanding 150,000 Market price per share of common stock $40.60 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round your answer to one decimal place.
Dividend Yield The market price for Macro Corporation closed at $46.62 and $40.00 on December 31, current year, and previous year, respectively. The dividends per share were $0.69 for current year and $0.80 for previous year. a. Determine the dividend yield for Macro on December 31, current year, and previous year. Round percentages to two decimal places. Current year % Previous year % b. The dividend yield from the previous year to the current year. This is a result of a(n) in the dividend relative to stock price.
VERTICAL ANALYSIS Give the analysis per line item. Sabina Electronics Comparative Income Statement This year Last year This year 5,000,000 3,875,000 1,125,000 653,000 472,000 72,000 400,000 120,000 280,000 110,000 Last year 4,350,000 3,450,000 900,000 548,000 352,000 72,000 280,000 84,000 196,000 95,000 Sales 100% 100% Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes 78% 79% 23% 21% 13% 13% 9% 8% 1% 2% 6% 2% 5% 2% 8% Income taxes (30%) Net income 2% 6% Common dividends 2% 101,000 579,000 680,000 Net income retained 170,000 3% 2% Beginning retained earnings Ending retained earnings 680,000 850,000

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