DW Company stock has an annual return mean and standard deviation of 14.5 percent and 43 percent, respectively. What is the smallest expected loss in the coming year with a probability of 16 percent? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Smallest expected loss -2.43 %
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- A stock has an abnormal return of -0,8% per month. What is the annualized abnormal return? The answer should be given in decimal form with three decimals (e.g., if the correct answer is 2.4% write 0.024)An insurance company’s projected loss ratio is 79.53 percent, and its loss adjustment expense ratio is 7.51 percent. It estimates that commission payments and dividends to policyholders will add another 13.96 percent. What is the minimum yield on investments required in order to maintain a positive operating ratio? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))A particular stock has a dividend yield of 1.3 percent. Last year, the stock price fell from $72 to $56. What was the return for the year? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. -9.22 % Return for the year
- Suppose that the average P/E multiple in the chemicals industry is 26. Smart Chemical is expected to have an EPS of S4.50 in the coming year. A reasonable estimate for intrinsic value of the stock should be: A. None of the answers are correct B. $100.25 C.$117.00 D. $30.50 E. $72.00Meridian Manufacturing, Inc.'s stock has had the following annual returns over the past 5 years: +14.2%; -9.8%. +32.6%, -19.8%, and +27.9%. Using the proper method for calculating investment returns, what is the 5-year return on Meridian Manufacturing's stock? ROUND YOUR ANSWER TO ONE DECIMAL PLACE, AND DO NOT ENTER THE PERCENT SIGN (i.e. 10.5% should be entered as 10.5)The common stock of Manchester & Moore is expected to earn 14.8 percent in a recession, 8 percent in a normal economy, and lose 5.8 percent in a booming economy. The probability of a boom is 12 percent while the probability of a recession is 6 percent. What is the expected rate of return on this stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- A stock is expected to pay a dividend next year of $2.1. The dividend amount is expected to grow at an annual rate of 6.9% indefinitely. Assuming a required return on the stock of 10.8% in the future, the dividend yield on the stock is %. Margin of error for correct responses: +/- .05 Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is 12.3456, 12.3456%, or $12.3456, you should enter 12.35).Sunset Corporation currently has an EPS of $2.38, and the benchmark PE for the company is 17. Earnings are expected to grow at 7.5 percent per year. a. What is your estimate of the current stock price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the target stock price in one year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. Assuming the company pays no dividends, what is the implied return on the company's stock over the next year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.2. a. Stock price today b. Stock price in one year c. Implied returnHere are alphas and betas for Company X and Company Y for the 60 months ending April 2019. Alpha is expressed as a percent per month. A month later, the market is up by 5%, X is up by 6% and Y is up by 3%. (3a) What is the abnormal rate of return for X and Y? ] Alpha Beta X 0.57 1.08 Y 0.46 0.65 The table below shows a condensed income statement and balance sheet for a plant. Income Statement Assets at 31 December 2018 Revenue 56.66 Net working capital 7.08 Raw materials cost 18.72 Operating cost 21.09 Depreciation Investment plant & equipment 69.33 4.50 Less accumulated depreciation Net plant & equipment 21.01 Pretax income 12.35 48.32 Tax at 35% 4.32 Net income 8.03 Total assets 55.40 (3b) Calculate the plant's EVA. Assume the cost of capital is 9%. (3c) Assume now that the plant could be sold to another company for $95 million. How should this fact change your calculation of EVA? Explain your answer
- The current (time zero) price of one share of farell corporation's common stock is $25. The price is expected to increase by $5 over the coming year. The company is not expected to pay a dividend during the year. The standard deviation of the expected price change is $3. The distribution of the end of year possible prices is approximately normal. Determine the probability of earning a return greater than 30 percent over the coming year from your investment in farell common stock.Show the monthly return of the company and S&P 500 in the same graph. What is your interruption interpretation of the change of return of the company comparing with the market index? Calculate the monthly standard deviation and return for both the company and S&P 500. What is your interruption of the risk and return of the company comparing with the market index? S&P 500 last 6 months : Date Open High Low Close* Adj. close** Volume 01 Apr 2022 4,540.32 4,593.45 4,381.34 4,392.59 4,392.59 37,024,560,000 01 Mar 2022 4,363.14 4,637.30 4,157.87 4,530.41 4,530.41 100,978,320,000 01 Feb 2022 4,519.57 4,595.31 4,114.65 4,373.94 4,373.94 73,167,790,000 01 Jan 2022 4,778.14 4,818.62 4,222.62 4,515.55 4,515.55 73,279,440,000 01 Dec 2021 4,602.82 4,808.93 4,495.12 4,766.18 4,766.18 68,699,830,000…Vijay