You bought 200 shares of Dr Pepper Snapple Group at $70.67 per share, 100 shares of Home Depot at $111.72 per share, and 50 shares of Tesla Motors at $235.11 per share one year ago. Suppose that the financial data from the same period indicate that Dr Pepper Snapple Group, Inc. stock has a beta of -0.11, Home Depot, Inc. stock has a beta of 1.21, and Tesla Motors, Inc. stock has a beta of 1.4. The risk-free interest rate is 2% and the market risk premium is 6.7%. What is the beta of the portfolio? A)1.9550 B)1.0935 C)0.7668 D)0.4828 E)0.8307

Q: A stock just paid a $7.93 dividend. The required return on the stock is 17.0% and dividends are…

A: The objective of this question is to calculate the current price of a stock using the Gordon Growth…

Q: Dewyco has preferred stock trading at $54 per share. The next preferred dividend of $4 is due in…

A: Cost of capital for preferred stock = Preferred dividend / Stock price where, Preferred dividend =…

Q: A biotechnology company's stock is currently selling for $46.35 per share. The earnings per share…

A: Give, Current Market Price =$46.35 per share Earnings per share = $4.14 Dividend = $1.90

Q: You purchased 320 shares of a particular stock at the beginning of the year at a price of $76.83.…

A: Number of shares (N) = 320 Beginning price (P0) = $76.83 Dividend (D1) = $1.70 Price at year end…

Q: You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000 shares…

A: SharesNumber of sharesPriceReturnsInvestmentApple60050012%300000Cisco…

Q: You bought 1,000 shares of Oracle stock last year for $200, you received a $5 per share divided…

A: Calculate the capital gain per share:Capital gain per share = Current price per share - Initial…

Q: You purchased Butterfly Wing Corporation stock exactly one year ago at a price of $77.66 per share.…

A: Total Return = (Selling Price - Purchase Price + Dividends) / Purchase Price15.84% = (Selling Price…

Q: You invest $1,500 into a "hot stock" through the Robin Hood app. The stock does well in the first…

A: We can find the money-weighted return by taking the investment made in the stock $1500 and $1000 and…

Q: Exactly one year ago, you bought 900 shares of Benefisite Corp. common stock for $25.31 per share.…

A: Number of shares = 900 sharesBeginning Price = $25.31 per shareEnding Price = $28.65 per share

Q: At the start of the month, you spent $448 total in purchasing all the shares of the stocks. The…

A: Shares are the representation of the proportion of ownership in the equity of a corporation by the…

Q: 'ou've observed the following returns on Yamauchi Corporation's stock over the past ve years: –26.4…

A: Standard deviation is a variation in the mean value of given data. Standard deviation is a…

Q: Use the following information for the next two items: Sheeva Corp. had P600,000 net income in 2020,…

A: Basic EPS is the earnings per share calculated by dividing Net Income attributable or available to…

Q: The Panama Canal Store has preferred stock that was selling last month for $15 per share. The…

A: Calculate the current dividend as follows:

Q: (Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the…

A: Rate of return = ( Year end price - beginning price + dividend during the year ) / beginning price

Q: You purchased Butterfly Wing Corporation stock exactly one year ago at a price of $79.40 per share.…

A: Purchase price of stock = $ 79.40 Annual dividend = $ 3.28 Total return = 16.50%

Q: rate

A: Formula to calculate rate of return on shares is: Ending value of investment - Beginning value of…

Q: he preferred stock of Dallas Platinum Exchange has a par value of $31 and pays a 7% dividend rate…

A: Preferred stocks are paid dividend on the par value and value of stock depends on the required rate…

Q: Home Depot (HD) issued preferred stock shares at a face value of $100 per share with a yield at the…

A: For Part 1 Total Return = (Current Value / Initial Value) - 1For Part 2 For an investor buying these…

Q: You bought a stock one year ago for $48.39 per share and sold it today for $57.71 per share. It paid…

A: Stock price per share one year ago = Beginning price per share = P0 = $48.39Stock price per share…

Q: FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock…

A: Weighted Average Cost of Capital (WACC) is the overall cost of capital from all the sources of…

Q: One year ago, you purchased 100 shares of a stock. This morning you sold those shares and realized a…

A: In this question, we are given that total return is 8.2%. We need to select the statement that is…

Q: Six months ago, you purchased 1,200 shares of ABC stock for $21.20 a share. You have received…

A: In the given case, we have provided the purchasing price (initial price) per share, selling price…

Q: Use the following information about SV Inc. to calculate the company’s Cost of Capital.   The stock…

A: Given,  Three projects A, B and C with betas and expected return

Q: ter of 2021, from July 1 through September 30, Hess Corp (HES) stock decreased from $88 to $78 per…

A: Initial investment and prices:Hess Corp (HES) stock price decreased from $88 to $78 per share.Exxon…

Q: A company has preferred stock outstanding. It issued the shares at $100 per share 3 years ago. The…

A: The firms of companies have several options to raise external capital. They can either issue equity…

Q: Let’s consider the dividend and the dividend yield of the Calzone Corporation. Last year, the…

A: Part 1: Quarterly Dividend is a which given in every 3 months or it can be said this dividend…

Q: If an investor purchased 100 shares of Biggee stock for $30 per share, 6 months ago, and then sold…

A: Solution:- Holding period return means the rate of return earned in the time during the time of…

Q: FedEx Corporation (FDX) has a current share price of $157.56 and is expected to have earnings per…

A: PE ratio of FDX stock= Price of FDX stock / EPS of FDX stock= 157.56/11.04= 14.27173913

Q: You've observed the following returns on Yamauchi Corporation's stock over the past five years:…

A: An investor or analyst can learn about historical returns for a company, security, or collection of…

Q: Shell Inc. is having a stock split. The current price is $57 per share, and you own 500 shares. The…

A: Stock split involves giving more equity for lessor.

Q: PG&E Corporation just paid a dividend of $4.8 per share (Do). The dividend is expected to grow at 5%…

A: Present value of stock will be the sum of present value of all dividend and terminal value.Stock…

Q: One year ago, you purchased 370 shares of Titan Wood Products for $64.10 per share. The stock has…

A: The return on investment indicates profitability. The investor makes an investment that offers a…

Q: Everest Inc's preferred stock pays a dividend of $1.10 per quarter, and it sells the preferred stock…

A: Dividend = $1.10 Preferred stock price = $34.40 Dividend rate per quarter = Dividend /stock price

Q: FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock…

A: WACC is a firm's cost of capital that is proportionally weighted by capital type. WACC is often used…

Q: What was your realized return?

A: The realized return refers to the actual profit or loss that an investor has experienced over a…

Q: A stock pays $0.2 dividend per share annually. An investor bought one share of stock at $2 at the…

A: The time-weighted geometric return is used to find out the average return based on the actual…

Q: One year ago today you bought 600 shares of Mullen Manufacturing’s common stock for $42.50 per…

A: Dividend Yield: Dividend Yield = (Total Dividends Received / Initial Investment) x 100Capital Gains…

Q: The preferred stock of Dallas Platinum Exchange has a par value of $58 and pays a 10% dividend rate…

A: First we need to use CAPM model to calculate cost of preferred stock from equation. Cost of…

Q: You believe that Rose, Inc., stock is going to fall and you have decided to sell 800 shares short.…

A: We have to create the balance sheet for short position at different stock prices.

Q: You bought a share of 3.92 percent preferred stock ($100 par value) for $95.88 last year. The market…

A: The problem case focuses on calculating the total return given by the preferred stock. The total…

Q: The Brigaphenski Co. has just paid a cash dividend of $2 per share. Investors expected return is…

A: Current value of the stock is calculated using following equation Current value of stock =…

Q: Dewyco has preferred stock trading at $53 per share. The next preferred dividend of $5 is due in one…

A: Next dividend (D1) = $5 Current price of stock (P0) = $53

Q: Dewyco has preferred stock trading at $53 per share. The next preferred dividend of $4 is due in one…

A: Cost of capital for a preferred stock can be calculated as dividend yield of a share.  Formula as:…

Q: You currently own 2,000 shares of Industrial Industries stock. You purchase the stock for $128.34…

A: Holding period return on stock is calculated below Holding period return = P1-P0+D1P0 Where, P1 is…

Q: You sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per share.Assume the…

A: Short sale price, P0 = $ 83.55Short sale quantity, Q = 100Proceeds from short sale, S = P0 x Q =…

Q: Sandhill Tire Co. just paid an annual dividend of $1.20 on its common shares. If Sandhill is…

A: Under dividend growth model, valuation of common stock is done by assuming that dividends keep…