Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $4 today andthen you sold it for $100. What was your dividend yield and capital gains yield on the investment?O A. 3%, 4%OB. 2%, 4%OC. 0%, 4%O D. 4%, 0%

Ratio analysis is quantitive method of getting inside review of an organisation. It helps in…

Answered: Suppose you invested $100 in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If D1=$1.2,g(which is constant)=5.5% and Po=$40.00 what is the stocks capital gain yield for the coming year A)7.1% b)6.5% c)4.7% d)5.5% e)6.8%
D3) Finance You invest in a mutual fund that charges a 3% front-end load, 1% operating costs, and a 1% 12b-1 fees. What are the total fees in year 1 on an initial investment of $20,000 with 10% annual growth in fund's asset value, or NAV? Note that "initial investment" means it is before the deduction of frontend load.
Required: A hedge fund with $1.7 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money market rate, which currently is 5%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of (Enter your answers in millions rounded to 1 decimal place.) Answer is complete but not entirely correct. Portfolio Rate of Return (%) b.0 c. 5 d. 10 Total Fee ($ million) 34,000,000.0 34,000,000.0 34,000,000.0 51,000,000.0 Total Fee (%) 2.0 WNNN oooo 2.0 2.0 3.0 ››
You have the following cash flows for the firm; What is NPV, if discount rate is 10% ? CF0 = -467 (CF0 is always negative. It is your initial investment) CF1 = 625 CF2 = 684 CF3 = 666 CF4 = 753 CF5 = 976
Suppose you invest Rs 600 in IBM and Rs 400 in Merc for a month. If the realized return is 2.5% on IBM and 1.5% on Merc over the month, what is the return on your total portfolio? a. 3.4% b. 1.4% c. 8.7% d. 2.1%
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Please answer now , finance question
12-10*. You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past returns: Year 2007 2008 Risk-free Return 3% 1% Market Return 6% -37% XYZ Return 10% -45% a. What was XYZ's average historical return? b. Compute the market's and XYZ's excess returns for each year. Estimate XYZ's beta. c. Suppose the current risk-free rate is 3%, and you expect the market's return to be 8%. Use the CAPM to estimate an expected return for XYZ Corp.'s stock. d. Would you base your estimate of XYZ's equity cost of capital on your answer in part (a) or in part (c)?
You have the following cash flows for the firm; What is NPV, if discount rate is 10% ? CF0 = -467 (CF0 is always negative. It is your initial investment) CF1 = 625 CF2 = 684 CF3 = 666 CF4 = 753 CF5 = 976
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Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $4 today and then you sold it for $100. What was your dividend yield and capital gains yield on the investment? OA. 3%, 4% OB. 2%, 4% OC. 0%, 4% O D. 4%, 0%