The stock price of Boeing is $104.03. The stock price of Apple is Type the number that corresponds to the true statement: 0: Boeing will have a higher weight than Apple in the S&P 500 Ind 1: Boeing will have a lower weight than Apple in the S&P 500 Ind 2: There is not enough information to answer the question.
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- Using the data in the following table, immediately. 9 calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock The realized return from January 2, 2008, to January 2, 2009 is Data table %. (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Dividend Historical Stock and Dividend Data for Boeing Date 1/3/2011 2/9/2011 5/11/2011 8/10/2011 11/8/2011 1/3/2012 Date 1/2/2008 2/6/2008 5/7/2008 8/6/2008 11/5/2008 1/2/2009 Price $87.75 $79.76 $85.01 $66.77 $47.75 $44.02 $0.37 $0.37 $0.37 $0.00 Print Done Price $67.58 $70.28 $80.89 $56.25 $64.88 $74.91 Dividend $0.41 $0.41 $0.41 $0.41 I XBrandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $7 million, $12 million, and $14 million. After the fourth year, free cash flow is projected to grow at a constant 5%. Brandtly's WACC is 13%, the market value of its debt and preferred stock totals $50 million, the firm has $15 million in nonoperating assets, and it has 12 million shares of common stock outstanding. a. What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. $ 51339694.5Co Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 34.0%, and the current dividend yield is 6.00%. Its beta is 1.28, the market risk premium is 12.00%, and the risk-free rate is 3.20%. a. Use the CAPM to estimate the firm's cost of equity. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of equity 12.00 % b. Now use the constant growth model to estimate the cost of equity. (Do not round intermediate calculations. Enter your answer as a whole percent.) Cost of equity 14 % < Prev 4 of 4 Next re to search 立
- S. Bouchard and Company hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: DO $0.85; PO $22.00; and g 6.00% (constant). The CEO thinks, however, that the stock price is temporanly depressed, and that it will soon rise to $34.00. Based on the DCF approach, by how much would the cost of common from retained earnings change if the stock price changes as the CEO expects?.True or False: The following statement accurately describes how firms make decisions related to issuing new common stock. Taking flotation costs into account will reduce the cost of new common stock. False: Flotation costs are additional costs associated with raising new common stock. True: Taking flotation costs into account will reduce the cost of new common stock, because you will multiply the cost of new common stock by 1 minus the flotation cost-similar to how the after-tax cost of debt is calculated Alpha Moose Transporters is considering investing in a one-year project that requires an initial investment of $475,000. To do so, it will have issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $550,000. The rate of return that Alpha Moose expects to earn on its project (net of its flotation costs) is (rounded to two decimal places) Sunny Day Manufacturing Company has a current stock price of…The following information was drawn from the accounting records of Jones Company. (Round the percentage to 1 decimal place Net sales Net income $316,279 Average total assets Average total liabilities Average total stockholders' equity 68,000 590,000 390,000 245,000 Based on this information the company's return on equity is es Multiple Choice The answer cannot be determined from the information provided. 27,8%. 21.5%. aw MacBook Air FB 888 F7 F6 F5 F4 F3 F2 F1 & % $ 8 @ 6. 4 2 W E Q G H D F S この
- Q2.A company with a stock priced at $50 must be worth more than a company with a stock priced at $5. True FalseTo help them estimate the company's cost of capital, Smithco has hired you as a consultant. You have been provided with the following data about the company's stock: D1 $1.45; PO = $25; and g = 6.50% (constant). What is the cost of common from issuing new stock, assuming the flotation cost is 10% of the stock price? = 13.59% 11.10% 12.94% 11.68% 12.30%Compute Topp Company's price-earnings (PE) ratio if its common stock has a market value of $22.20 per share and its earnings per share (EPS) is $4.00. Topp's key competitor, Lower Deck, has a price-earnings (PE) ratio of 9.5. For which company does the market have higher expectations of future performance? Complete this question by entering your answers in the tabs below. Price Earnings Ratio Future Performance Compute Topp Company's price-earnings (PE) ratio if its common stock has a market value of $22.20 per share and its earnings per share (EPS) is $4.00. Choose Numerator: Price Earnings Ratio 1 Choose Denominator: 1 1 Price Earnings Ratio = Price Earnings Ratio
- You've collected the following information about Groot, Inc.: Profit margin Total asset turnover Total debt ratio Payout ratio = 4.44% = 3.50 = .25 = 29% a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROA % 15.54 %(Calculating rates of return) On December 10, 2007, the common stock of Google Inc. (GOOG) was trading for $ 718.42. One year later the shares sold for only $ 308.82. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 10, 2007? Question content area bottom Part 1 The rate of return you would have earned is enter your response here %. (Round to two decimal places.)Can small adjustments to a flow lead to large changes in a stock? Group of answer choices A.There is no way to determine if this is possible. B.Yes, given enough time. Even a small change in flow will accumulate over time. C.No. If the change in the flow is small, the change to the stock must also be small. D.Yes. If a penny is deducted from an account of $10,000, that change is large because every penny counts. E.No. Flows can’t change in small ways.