None 8.On the spreadsheet with this chapter you will find the following monthly data for Cisco'sstock price and the S&P 500 index. Compute the equation resco, desco + Besco/SP, andinclude the R² and 1-statistics for the equation and its coefficients."ABCCISCO (CSCO) AND S&P500 PRICESJuly 2002 June 200712DateS&P 500CSCO33-Jul-02911.6213.19451-Aug-02916.0713.823-Sep-02815.2810.4861-Oct-02885.7611.1871-Nov-02936.3114.9282-Dec-02879.8213.1092-Jan-03855.7013.37103-Feb-03841.1513.98113-Mar-03848.1812.98121-Apr-03916.9215.00131-May-03963.5916.41142-Jun-03974.5016.79151-Jul-03990.3119.49161-Aug-031008.0119.14172-Sep-03995.9719.59181-Oct-031050.7120.93193-Nov-031058.2022.70201-Dec-031111.9224.23212-Jan-041131.1325.71222-Feb-041144.9423.16

To perform the analysis described in the question, you will need to compute a linear regression…

Answered: 8. On the spreadsheet with this chapter…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter14: Distributions To Shareholders:dividends And Share Repurchases

Section: Chapter Questions

Problem 3TCL

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A)The following are monthly percentage price changes for four market indexes. Month DJIA S&P 500 Russell 2000 Nikkei 1 0.03 0.02 0.04 0.04 2 0.07 0.06 0.10 −0.02 3 −0.02 −0.01 −0.04 0.07 4 0.01 0.03 0.03 0.02 5 0.05 0.04 0.11 0.02 6 −0.06 −0.04 −0.08 0.06 Compute the following. a. Average monthly rate of…
UNIT 7-5
You've collected the following information from your favorite financial website. 52-Week Price Hi 77.40 55.81 131.08 50.24 35.00 Lo 10.43 33.42 70.25 13.95 20.74 Stock (Div) Palm Coal 0.36 Lake Lead Grp Overvalued 1.54 SIR 2.75 DR Dime 0.80 Candy Galore 0.32 Div PE Yld % Ratio 2.6 6 10 10 6 28 3.8 3.1 5.2 1.5 Close Net Price Chg 13.90 -0.24 40.43 -0.01 89.12 15.43 ?? 3.07 -0.26 0.18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 21 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent indefinitely. Assume investors require a return of 15 percent on SIR stock. Requirement 1: According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current stock price Requirement 2: Based on these assumptions, is the stock currently overvalued,…
From the following price data, compute the annual rates of return for Asman and Salinas. Time Asman Salinas 1 $ 10 $ 31 2 13 27 3 12 33 4 14 35 (Click on the icon in order to copy its contents into a spreadsheet.) How would you interpret the meaning of the annual rates of return? Question content area bottom Part 1 The rate of return you would have earned on Asman stock from time 1 to time 2 is enter your response here %. (Round to two decimal places.) Part 2 The rate of return you would have earned on Asman stock from time 2 to time 3 is enter your response here %. (Round to two decimal places.) Part 3 The rate of return you would have earned on Asman stock from time 3 to time 4 is enter your response here %. (Round to two decimal places.) Part 4 The rate of return you would have earned on Salinas stock from time 1 to time 2 is enter your response here %. (Round to two decimal places.) Part 5…
1. If you had bought the January put with exercise price $105, will you exercise your put? 2. What is the profit (loss) on your position?
(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas. Time Asman Salinas 1 $10 $30 2 12 27 3 11 32 4 13 34 (Click on the icon in order to copy its contents into a spreadsheet.) How would you interpret the meaning of the annual rates of return? Question content area bottom Part 1 The rate of return you would have earned on Asman stock from time 1 to time 2 is enter your response here%. (Round to two decimal places.)
You've collected the following information from your favorite financial website. 52-Week Price Div Yld PE Close Net Ratio Price Chg Hi Lo Stock (Div) % 77.40 10.43 Palm Coal .36 2.6 6 13.90 .24 55.81 33.42 Lake Lead Grp 1.54 3.8 10 40.43 -.01 130.93 69.50 SIR 2.00 2.2 10 88.97 3.07 50.24 13.95 DR Dime .80 5.2 6 15.43 -.26 .18 35.30 20.77 Candy Galore 0.35 1.5 28 ?? a. Using the dividend yield, calculate the closing price for Candy Galore on this day. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Assume the actual closing price for Candy Galore was $23.02. Your research projects a 4.75 percent dividend growth rate for Candy Galore. What is the required return for the stock using the dividend discount model and the actual stock price? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock price b. Required return %
The following are monthly percentage price changes for three market indexes Month DJIA S&P 500 Nasdaq 1 0.02 0.03 0.05 2 0.07 0.07 0.23 -0.02 -0.02 -0.05 0.01 0.0 0.05 5 0.05 0.05 0.13 6-0.06 -0.04 -0.06 What is the covariance between the rates of return for S&P 500 and Nasdaq? 4 Oa. 0.0041 The following are monthly percentage price changes for three market indexes Month DJIA S&P 500 Nasdaq 1 0.02 0.05 0.07 0.2 -0.02 -0.05 0.01 0.05 5 0.05 0.13 6 -0.06 -0.06 What is the covariance between the rates of return for S&P 500 and Nasdaq? 2 3 4 a 0.0041 0.03 0.07 -0.02 0.03 0.05 -0.04
Consider the following monthly data for various factors and a trading strategy: Month Mkt-RF SMB HML RMW CMA UMD Strategy Z 1 0.61 -2.56 -0.04 2.42 2.86 1.62 -0.24 2 0.35 -0.38 -7.72 -1.81 -7.22 -0.63 -2.89 3 6.46 1.34 -0.26 2.18 -1.62 -2.37 6.11 4 3.21 2.86 4.11 -0.57 0.57 -3.98 5.39 5 -2.39 -3.65 -1.06 3.43 -2.37 3.77 -3.67 6 -5.24 -1.8 1.52 1.86 -0.83 0.26 -4.65 7 -3.19 -4.05 0.18 2.47 -0.65 1.72 -4.01 8 8.84 -0.12 1.64 -3.91 -1.00 2.75 8.58 9 4.87 7.32 4.93 -3.07 1.32 -5.51 8.55 10 0.71 -5.74 -2.38 0.69 -0.96 5.19 -2.04 11 5.06 -0.78 -3.49 -1.99 -2.14 4.96 2.92 12 2.83 -1.16 4.19 1.48 1.18 -0.42 3.88 (a) (10 marks) Calculate the annualised alpha of Strategy Z against a benchmark model consisting of the market factor, the profitability factor, and the momentum factor. Hint: You may use the Excel function LINEST() or the regression function in the Excel Data Analysis toolbox to get regression results. Answer:
You've collected the following information from your favorite financial website. 52-Week Price Div PE Close Net Hi Lo Stock (Div) Yld % Ratio Price Chg 77.40 10.43 Palm Coal 0.36 2.6 6 13.90 -0.24 Lake Lead Grp 55.81 33.42 3.8 10 40.43 -0.01 1.54 131.04 70.05 SIR 2.55 2.9 10 89.08 3.07 50.24 13.95 DR Dime 0.80 5.2 6 15.43 -0.26 Candy Galore 35.00 20.74 1.5 28 ?? 0.18 0.32 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 21 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent indefinitely. Assume investors require a return of 14 percent on SIR stock. (Hint: the number after the company's name above is DO.) Requirement 1: According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current stock price
(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas. Time 1 2 3 12 4 14 (Click on the icon in order to copy its contents into a spreadsheet.) How would you interpret the meaning of the annual rates of return? Asman $9 11 Salinas $30 27 32 36 The rate of return you would have earned on Asman stock from time 1 to time 2 is %. (Round to two decimal places.)
What is the risk premium for the stock in the table below? The risk free rate is 1.05% and the market risk premium is 5.41%. Apple Inc. (AAPL) NasdageS - Nasdaqes Reat Time Price. Curtency in USD 17 122.41 - 0.83 (-0.67%) At close: December 11 4:00PM EST Summary Company Outlook Chart Stat Conversations Previous Close 123.24 Market Cap 2.081T Open 122.43 Beta (SY Monthly) 1.30 Bid 122.28 x 900 PE Ratio (TIM) 37.32 Ask 122.29 x 800 EPS (TIM) 3.28 Day's Range 120.55 - 122.76 Earnings Date Jan 25, 2021 - 52 Week Range 53.15 - 137.98 Forward Dividend & Yield Feb 01, 2021 0.82 (0.67%) Volume 86,939,786 Ex-Dividend Date Nov 06, 2020 Avg. Volume 125,250,132 Ly Target Est 126.24

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