10. Grullon Co. is considering a 8-for-3 stock split. The current stock price is $70.00 per share What is the stock's expected price following the split?
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- The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. What is the risk-neutral probability of that the stock price will be $36? Choose the right answer: a. 0.3 b. 0.4 c. 0.5 d. 0.61. A share of stock of company is now selling for 23.5 lei. A financial analyst summarizes the uncertainty about the rate of return on the stock by specifying three possible scenarios: Scenario Probability 0.35 End-of-year price 35 27 Annual dividend 4.4 II 0.3 4 15 Compute the expected return and risk on this security. III 0.35 4A stock is currently selling for $60 a share. What is the percentage gain or loss on the followingtransactions? Identify if it is a gain or loss.a. You take a long position and the stock’s price declines to $50. b. You sell the stock short and the price increases to $70.
- A stock is currently selling for $40.00 a share. What is the gain or loss on the following transactions? Use a minus sign to enter the amount as a negative value. Round your answers to the nearest cent. a. You take a long position and the stock's price declines to $37.35. -10.65 b. You sell the stock short and the price declines to $37.35. 10.65 c. You take a long position and the price rises to $50.65. $ 2.65 d. You sell the stock short and the price rises to $50.65. -2.65A stock justpaid a dividend of $0.8. The required rate of return is 10.6%, and the constantgrowth rate is 6.2%. What is the current stock price?Note: Enter your answer rounded off to two decimal points.Do not enter $ or comma in the answer box. For example, if your answer is$12.345 then enter as 12.35 in the answer box.A single share of stock in a company has a current price of 65. The stock does not pay dividends. Suppose that there are only four possibilities for the stock's price in one year. These possibilities, along with the probability of each occurring, are provided in the table below. 41 57 75 90 P(S1 0.16 0.26 0.37 0.21 Find the stock's annual volatility. 27.70% O 20.14% You Answered 17.63% Correct Answer 25.18% O 22.66% i am confused at the answer. please show menhow it gets to the answer
- 3. What is the intrinsic value of a share of stock if expected dividends are $8/share and the expected price year is $90/share? Assume a discount rate of 10%. What is the expected return and what should be the decision from an investor?. in 1A. What is the investor's required rate of return for Green Gadgets' stock? ________% (round to two decimal paces) B. Assuming that the investor's required rate of return for Green Gadget's stock does not change, what would you expect to happen to the price of its common stock if it cuts dividend to $3? $_______ (round to the nearest cent) C. Should Green Gadgeds cut its dividend? ( select from the drop down menus) Green Gadgets Should / Should not cut the dividend because cutting the dividend will increase / decrease the value of the common stock.9. I need help with finance homework question asap please A stock that currently sells for $425 has a required return of 13.45% and dividend yield of 2%. What is this stock's expected capital gains yield?
- The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. What is the risk- neutral probability p of that the stock price will be $26? O 0.4 O 0.6 O 0.7 O None of these O 0.5 ◄ Previous Next ▸A) What will be the number of shares outstanding after the split? B) If the common stock had a market price of $210 per share before the stock split, what would be an approximate market price per share after the split?What is the cost of preferred stock if the annual dividend is $8.75, stock price is $12, and the flotation cost is $3? How is the cost of preferred stock impacted if the annual dividend increases to $9? What if the annual dividend decreases to $8.50?