[ad_1]

Get college assignment help at uniessay writers Which of the following would be most likely to lead to a decrease in a firm’s dividend payout ratio? A) Its earnings become more stable. B) Its access to the capital markets increases. C) Its R

A $1,000 Bond pays half-yearly coupons at 10% pa and will be redeemed on 17 July 2019. Find the price of the Bond on 17 July 2010, so that it yields 10% compounding half-yearly. Give your answer in dollars and cents to 2 decimal places.

The dimensions of a closed rectangular box are measured as 84 cm, 61 cm, and 42 cm, … cm, and 42 cm, respectively, with a possible error of 0.2 cm in each dimension. Use differentials to estimate the maximum error in calculating the surface area of the box. ….. (Give your answers correct to one decimal place.)

(a) Find the amount to which Rs.500 will grow under each of the following conditions: i. 12 percent compounded semi-annually for 5 years. ii. 12 percent compounded quarterly for 5 years. iii. 12 percent compounded monthly for 5 years. (05)

QP11-14 Using CAPM A stock has an expected return of 14 percent, its beta is 1.4, and the risk-free rate is 4.5 percent. What must the expected return on the market be? (Input answer as a percent rounded to 2 decimal places, without the percent sign. (e.g., 32.16)) Expected return ____________ percent

Question 2: (1 point) QP11-4 Portfolio Expected Return You have $22,600 to invest in a stock portfolio. Your choices are Stock X with an expected return of 22 percent and Stock Y with an expected return of 14.1 percent. If your goal is to create a portfolio with an expected return of 17.6 percent, how much money will you invest in Stock X? In Stock Y? (Do not include the dollar sign ($). Round your answers to 2 decimal places. (e.g., 32.16)) Investment in X $ ____________ Investment in Y $ ____________

4. Kholdy Inc’s bonds currently sell for $1,275. They pay a $120 annual coupon and have a 20-year maturity, but they can be called in 5 years at $1,120. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between the bond’s YTM and its YTC?

S follows a geometric brownian motion process with current price s= $100 and mean return u=15 % p.a. assuming stock volatility to be 20% p.a. simulate three different stock paths for one year T=1 with time steps t= 1/250= 0.004. present your results in a graph

the strengths and weaknesses of the merger of tse internationaland yeats valves and controls

1. Garvin Enterprises’ bonds currently sell for $1,150. They have a 6-year maturity, an annual coupon of $85, and a par value of $1,000. What is their current yield?

Get college assignment help at uniessay writers 14.Analyzing a Portfolio [LO2] You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Given this information, fill in the rest of the following table. (Do not include the dollar signs ($). Leave no cells blank – be certain to enter “0” wherever required. Round your answers to the nearest whole dollar amount. (e.g., 32)) Asset Investment Beta Stock A $210,000 .85 Stock B $320,000 1.20 Stock C $ ___ 1.35 Risk-free asset $______ $ ____

15.Systematic versus Unsystematic Risk [LO3] Consider the following information on Stocks I and II: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock I Stock II Recession .25 .11 –.40 Normal .50 .29 .10 Irrational exuberance .25 .13 .56 The market risk premium is 8 percent, and the risk-free rate is 4 percent. For standard deviations: (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16.)) For betas: (Round your answers to 2 decimal places. e.g., 32.16.) The standard deviation on Stock I’s expected return is ___percent, and the Stock I beta is ___. The standard deviation on Stock II’s expected return is ___percent, and the Stock II beta is ___. Therefore, based on the stocks’ systematic risk/beta, Stock I is “riskier”.

16.SML Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.35 .132 Repete Co. .80 .101 Assume these securities are correctly priced. Based on the CAPM, the expected return on the market is ___percent. The risk-free rate is ___percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16.))

Suppose a ten year ,1000 bond with an 8.9% coupon rate and semiannual coupons is trading for a price of $1034.52. What is the bond’s yeild maturaty?

The Patrick Company’s cost of common equity is 16%, its before- tax cost of debt is 13%, and its marginal tax rate is 40%. The stock sells at book value. Using the following balance sheet, calculate Patrick’s WACC.

Historically, individuals have owned the majority of shares in public corporations in the United States. In other countries like Germany and Japan, banks and other large financial institutions and other companies own most of the stock in public corporation. Do you think agency problems are likely to be more or less severe in these countries?

2.Calculating Returns and Variability Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not include the percent signs (%). For average return and standard deviation round your answers to 2 decimal places, (e.g., 32.16) and for variance round your answers to 6 decimal places. (e.g., 32.161616)) Returns Year X Y 1 8% 16% 2 21 38 3 17 14 4 –16 –21 5 9 26 X Y Average Return ___% 14.60% Variance _____ 0.048680 Standard Deviation ___% 22.06%

3.Calculating Real Returns and Risk Premiums You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 7 percent, -12 percent, 11 percent, 38 percent, and 14 percent. Required: a. The arithmetic average return on Crash-n-Burn’s stock over this five year period was 11.6 percent. b. Suppose the average inflation rate over this time period was 3.5 percent and the average T-bill rate over the period was 4.2 percent. The average real return on Crash-n-Burn’s stock was ____percent and the average nominal risk premium on Crash-n-Burn’s stock was ____percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))

4.Calculating Investment Returns [LO1] You bought one of Great White Shark Repellant Co.’s 8 percent coupon bonds one year ago for $1,030. These bonds make annual payments and mature six years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 percent. If the inflation rate was 4.2 percent over the past year, your total real return on this investment was ____percent.

An increase in the debt ratio will generally have no effect on which of these items? A) Business risk. B) Total risk. C) Financial risk. D) Market risk. E) The firm’s beta.

If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay A) no dividends except out of past retained earnings. B) no dividends to common stockholders. C) dividends only out of funds raised by the sale of new common stock. D) dividends only out of funds raised by borrowing money (i.e., issue debt). E) dividends only out of funds raised by selling off fixed assets.

The post Which of the following would be most likely to lead to appeared first on uniessay writers.

[ad_2]

Source link

November 3, 2019