What is the total return of an equal-weighted index over the holding period given the following data set? Dividends Ending Beginning # of shares Stock Share Priceoutstanding (per Share share) Price A 47 3 560 000 45 60 6 850 000 4.2 65 C 25 18 100 000 3.1 21
Q: Which one of the following represents the highest effective interest rate per year
A: Effective interest rate is different from the annual percentage rate. This is because effective…
Q: Panelli's is analyzing a project with an initial cost of $139,000 and cash inflows of $74,000 in…
A: WACC = ( weight of equity * Cost of equity) + ( weight of debt * after Tax cost of debt) = ( 1/1.39…
Q: Which is not a benefit of debt to the corporation? a. interest payments are tax deductible b. when…
A: When debt is borrowed heavily, it increases the burden of interest and principal repayment. When…
Q: Which of the following statements is/are true? Statement 1: The PSE is a self-regulatory…
A: Financial markets are said to be perfect when trading costs are very low, access to financial market…
Q: A firm has an net operating profit of P300,000, interest of P35,000, and a tax rate of 25%. The firm…
A: WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of Debt * (1- Tax rate)) Firm…
Q: The National Company’s bonds have 4 years remaining to maturity. Interest is paid annually; the…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: discuss the motives a company may have for engaging in currency and intrest rate swaps
A: A swap is a two-party derivative transaction that includes the exchange of pre-agreed cash flows. It…
Q: The QYU, Inc. has sales of P5 million per year (all credit) and an average collection period of 35…
A:
Q: s funded by both debt and equity with a debt to equity ratio of 100%. If Gs Co. has a retained…
A: In this given case, debt to equity ratio is 100% which means debt is 100% of equity , so this lead…
Q: A firm has an net operating profit of P300,000, interest of P35,000, and a tax rate of 25%. The firm…
A: Net operating profit = P300,000 Before tax cost of debt (Kd) = 0.06 Cost of equity (Ke) = 0.15…
Q: Find the due date for 130 days note dated July 7,using Actual time
A: Note payable refers to those legal obligations of the company which will be paid on any specific…
Q: An analyst creates a probabilistic scenario analysis for projecting stock market returns. The…
A: Given, The returns and probabilities of a stock
Q: Pedro buys a condo for $629,000, with a down payment of $40,000. He takes out a 30-year mortgage for…
A: Loan amount (P) = $589,000 Monthly interest rate (r) = 0.0025 (i.e. 0.03 / 12) Monthly period of…
Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…
A: A loan is an agreement where an amount is forwarded in exchange for periodic payments that cover the…
Q: To retain high-performing engineers, a large semiconductor company provides corporate stock as part…
A: Present value analysis The present value is calculated by summing up the present value of all…
Q: At what nominal rate compounded quarterly will payments of P 800 at the beginning of each 3 months…
A: Here, Quarterly Payment is P800 Time Period is 5 years Annuity Type is Annuity Due Borrowed Amount…
Q: 1) The finance manager is required to look into the financial implications of every decision in the…
A: True. The financial manager has to look into every decision that has financial consequences. He/she…
Q: Gs Co. has a debt to equity ratio of 25% and a weighted average cost of capital at 25%. The firm…
A: While computing weighted average cost of capital, the after-tax cost of debt is taken. Therefore, in…
Q: Galaxy Satellite Co. is attempting to select the best group of independent projects competing for…
A: NPV and IRR are two techniques of capital budgeting. These techniques are used to evaluate the…
Q: True or False 1. Setting financial goals involves prioritization of needs and wants. 2. Financial…
A: Financial planning involves assessment of the quantum of investment required to meet a future…
Q: What is the price of a U.S. Treasury bill with 36 days to maturity quoted at a discount yield of…
A: Treasury bills are referred to as short-term debt obligations which are backed up by the U.S.…
Q: Tax evasion and tax avoidance costs the UK government £34 billion a year.” In the light of the above…
A: Tax evasion: One sign of tax evasion is the amount of unreported income, which is the difference…
Q: Would you rather receive $1,000 now and $2,000 in two years or $2,500 in one year, using a 4%…
A: Present value = C0 + (C1 * (1+r)-1) + (C2*(1+r)-2) Where C0 = Cash flow year 0 C1 = Cash flow year 1…
Q: A project has an initial cost of $50 000, net annual cash inflows of $20 000, and a $2 000 salvage…
A: Rate of return is the return on the profit on investment, It can change the value of investment,…
Q: How much should she invest at the end of every year in an investment fund that earns 9% annually to…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: A venture will provide a net cash inflow of $57,000 in Year 1. The annual cash flows are projected…
A: Year 1 cash inflow = $57,000 Required return = 0.156 Initial cost = $739,000 Growth rate to break…
Q: A middle-aged school teacher is dreaming about retirement. She believes she can comfortably leave…
A:
Q: a. If the first payment is made four years from now, what is this grand prize really worth today?…
A: Present Value is the value of money in today at zero period for all the payments which is received…
Q: GS Co.’s capital structure consists entirely of long-term liabilities and common equity. The cost of…
A: Cost of long term liabilities (Kd) = 0.03 Cost of common equity (Ke) = 0.05 Tax rate (T) = 0.30…
Q: Which of the following statements is true in relation to the call price of preference shares? The…
A: Preference shares are the shares that have preference in the payment of dividend before the equity…
Q: A firm has an net operating profit of P300,000, interest of P35,000, and a tax rate of 25%. The firm…
A: WACC = (Ke*Wk) + (Kd*(1-t)*Wd) Where Ke = Cost of equity Kd = Cost of debt Wk = weight of equity…
Q: Changes in yield-to-maturity (YTM) produce market price risk and reinvestment risk. A __________ in…
A: The answer is option B. decrease/increase. A decrease in yield-to-maturity (YTM) increases a bond’s…
Q: Scenario D: Six months later your credit card is carrying a balance of $500. You decide that you…
A: APR is annual percentage rate is yearly generated of interest which is paid by borrower or given to…
Q: years. Manually calculate the compounded amount and the compounded interest of Aaron's investment.
A: Compound Interest: It is the interest on the investment or loan computed based on the initial…
Q: has an expected return of 14%, its stock is currently trading at a price of does this indicate the…
A: Growth rate of dividends can be found from constant growth of dividend model assuming that dividend…
Q: Which type of average rate of return best describes the average annual rate of return earned over…
A: A mutual fund's average yearly return is a percentage that indicates the fund's historical average…
Q: On the basis of these data, the real risk-free rate of return is 3% 2% 0% 1%
A: Real risk-free rate refers to the rate of interest that is expected by the investors on the…
Q: Professor Wendy Smith has been offered the following opportunity A law firm would like to retain her…
A: Upfront Payment $ 49,000.00 Number Hours worked in Month 8 Per Month Rate $…
Q: ABC Co. has recently purchased ordinary shares of XYZ Co, one of its competitors, as part of a…
A: a. Call option is purchased when the share price of a company is expected to increase in the future.…
Q: If the interest rate on comparable debt is 2.0% is your broker fairly pricing the bond? (What is the…
A: Bond: It is a debt instrument issued by the firm (issuer) to raise debt capital. The issuer pays…
Q: Which of these would NOT contribute to a retailer's use of forward buy? O A. Low holding costs O B.…
A: Forward buying - When a buyer negotiates the purchase of a commodity at current price i.e., today's…
Q: Which of the following statements is CORRECT? a. A bond is likely to be called if it sells at a…
A: Bonds are the secured instruments which generate fixed income for the investors in the form of…
Q: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…
A: Maximum amount of loan that Larry can pay in 6 years will be equal to the the present value of…
Q: funde and exchange traded funds (ETES) is that:
A: A person looking to make investments in stocks and securities can consider different investment…
Q: Which is a key difference a manager should note in choosing between forward and futures contracts?…
A: a. Exchange trading occurs in the case of futures contracts. Therefore, futures contract are more…
Q: Choose the correct answer. 1. The following are examples of common financial goals and activities,…
A: FIinancial goals means managing one's own money as well as saving and investing. It doesn't include…
Q: up to $700 monthly in order to repay the loan. Determine if it is enough for him to agree on this…
A: Loan payment: These represent periodic payments made by the borrower to the lender for the purpose…
Q: You own Php35,000 from the bank for 3 years at 8.50% annual interest, and you will make equal…
A: Loan amount (P) = Php35,000 Monthly loan term (t) = 36 (i.e. 3 years * 12) Monthly interest rate (r)…
Q: Future Value for Various Compounding Periods Find the amount to which $700 will grow under each of…
A: Initial investment (I) = $700 Period = 5 years Interest rate = 12% or 0.12 Future value is the…
Q: The rationales of Corporate Parents. Explain styles of Parenting – where do they potentially add or…
A: A corporate parent is a label given to an organization or someone with unique obligations for the…
8.
Step by step
Solved in 2 steps with 2 images
- What information do you need to calculate the weighted average common shares outstanding?23) What is the total return of an equal-weighted index over the holding period given the following data set? Stock Beginning Share Price # of shares outstanding Dividends (per share) Ending Share Price A 44 3 560 000 0 47 B 65 6 850 000 6.9 62 C 25 18 100 000 3.1 22What is the expected return of Stock A given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234
- The following table displays hypothetical stock quotations. Use the information in the table to answer the questions that follow. Listed Stock Quotes Company Ticker High Low Last Price* Net Change** YTD %*** Div. Yield P/E Ratio MarkMin MM 93.06 67.68 84.60 4.56 1.66 0 46 MarlRedBiro MRB 14.00 9.15 10.77 2.01 7.19 6.0 10 TStar TS 341.06 221.69 284.22 2.70 5.02 2.4 26 *Last price for the day **Net change in price from previous day ***Year-to-date percentage change in stock price Of the three stocks listed, a retiree who lives partially off of investment income would be best off holding because of its . You can calculate that MarkMin had per-share earnings for the most recent 12-month period of . If you had purchased 100 shares of TStar stock yesterday at the last price of the day, you would have of if you sold all 100 shares at the last price today.The ____________________per share is the amount of income attributable to each share ofcommon stock.a. earningsb. market valuec. book valued. preferred valueWhat effect do stock dividends or stock splits have on thecomputation of the weighted-average number of sharesoutstanding?
- What is the standard deviation of Stock A returns given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"You are given the following information regarding prices for stocks of the followingfirms: PRICE Stock Number of Shares T T+ 1 ScotBank Ltd. 1,000,000 60 80 Jetvan Ltd 10,000,000 20 35 PriceLife Ltd. 30,000,000 18 25 i. Construct a price-weighted index for these three stocks and compute the percentagechange in the series for the period from T to T +1. ii. Construct a market-value-weighted index for these three stocks and compute thepercentage change in the series for the period from T to T +1. iii. Based on your answer above, which of these indexes BEST illustrate the movementon the stock market.1- Calculate the beta adjusted by the degree of freedom for stock X relative to the equity market using the information from the table (performance): Year X Market 1 -7 7 2 -11 15 3 21 20 4 15 17 5 8 10 6 9 7 7 -2 -1
- When computing for book value per unit, which of the following is used as a denominator? a. All issued shares of stocks b. Preferred and common stocks only c. Common and treasury stocks only d. Outstanding common stocks only1. 1- Calculate the beta adjusted by the degree of freedom for stock Xx relative to the equity market using the information from the table (performance): Year 1 2 3 4 5 660 7 X -7 -11 21 15 8 9 -2 Market 15 20 17 10 -1What is the weighted average number of ordinary shares outstanding that should be used for the computation of book value per share and basic earnings per share?