1. The option is currently A. In-the-money B. At-the-money C. Out-the-money 2. Determine the In/At/Out- the money by _____ 3, Determine the Intrinsic Value
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1. The option is currently
A. In-the-money
B. At-the-money
C. Out-the-money
2. Determine the In/At/Out- the money by _____
3, Determine the Intrinsic Value
Step by step
Solved in 2 steps
- An index consists of the following securities. What is the value-weighted index return? Value-weighted Stock Shares Outstanding Beginning Share Price Ending Share Price L 4,000 $ 18 $ 26 M 3,000 $ 35 $ 41 Multiple Choice 22.03% 22.85% 25.25% 28.25% 30.00%1. stock EPS share price Growth rate A $0.30 $4.80 4% B $0.40 $5.50 6% C $0.50 $7.50 7% D $0.60 $8.00 5% Using the PEG ratio, rank the stocks in order of investment opportunity, the first having the best, the last having the worst. A. C,B,D,A B. A,D,B,C C. C,D,B,A D. B,D,C,A 2.Which of the following not true regarding financial statement A.Group financial statement be produced by each subsidiary as well as the parent entity B.Profit must be separated between members of the parent company and that of minority interest C.Minority interest share of equity represents that ‘part of a subsidiary’s equity not allocated to members of the parent company. D.Group financial statements must be produced by the parent entity only. E.None of the options provided.Calcualte the Cost of Preferred Stock: Par value = $100 Annual dividend = 7.5% of par Market value = $102 Flotation cost = 4%
- What is the expected return of the following portfolio? Stock Price Per Share Number of Shares Security Expected Return A $ 16 1509.01 B $ 13 175 10.53Use the following tables to assess the worthiness of Verticon stock as an investment. Verticon Stock Data (Current and Historical) 3:45PM EDT Aug 16, 2011 Price 18.85 USD Change +0.64 (+3.51%) Mkt cap 147.1B Div/yield 0.20/4.24 Shares 8,012 Beta 0.70 Book/share 11.335 EPS 1.11 12/2010 12/2009 12/2008 (Millions of Dollars) Total Assets 195,014 195,949 111,148 Total Liabilities 107,201 122,935 53,592 Preferred Shareholders’ Equity 52 61 73 Common Shareholders’ Equity 87,761 72,953 57,483 Shares Outstanding 8,012 8,070 6746 Book/Share ? 9.040 8.521 Q1 (Mar ’11) 2010 Net profit margin 15.24% 12.24% Return on equity 11.60% 9.30% Which one in bold? One of the most important features of a stock is its book value. The book value per share of Verticon’s stock for the year 2010 was equal to (10.954, 13.693, 11.502). Looking at the (Market cap, EPS, change in price, beta value, ROE) ,…What is the expected return on this portfolio? Stock Expected Return # of Shares Price/Share A 12% 200 $18.60 B -5% 400 $12.85 C 13% 300 $43.90 Group of answer choices 13.97% 13.42% 7.83% 11.56% 8.63%
- a. Expected return b. Price per share d. New share price e-1. Shares repurchased e-2. New shares outstanding g. Required return $ $ G 15.43 % 34.68 37.08 %Using the following information on Share Z, what is the estimate of Share Z’s next year share price as given by the P/E and by P/CF? P/E P/S P/CF Current value per share $5.50 $14.90 $6.8 5-year average price ratio 10.2 4.0 7.6 5-year average growth rate 15.0% 12.70% 13.0%What is the expected return on this portfolio? # of Expected Return Stock Price/Share Shares A 11% 200 $18.60 6% 400 $12.85 C 17% 300 $43.90 11.56% 13.97% 7.83% 8.63% 13.42%
- If a company has a current stock price of $45, an EPS of $3/share; EPS growth rate of 10% and the investors rate of return is 15%, calculate the cash cow price.0 a. $180 b. $190 c. $22 Od. $210 e. $20IGENEXTThe M. Smith and Family Corporation Data Shares Outstanding 25,000,000 Earnings $50,000,000 Dividends, Per Share (Just Paid) $1.25 Return on Equity 0.15 Beta 1.35 Market Data Expected Return Market Return 0.12 Risk-Free Rate 0.03 Required: Using the information in the tables above, complete the necessary steps to calculate the P/E ratio and the PEG ratio. The M. Smith and Family Corporation Calculations Capitalization Rate Earnings Per Share Plowback Rate Sustainable Growth Rate Price P/E Ratio Sustainable Growth Rate (as Percentage, use for PEG Calculation) 0 PEG RatioCalculate the portfolio beta Stock Value Portfolio share Stock beta Apple Inc. $40,000 0.30 1.36 Tesla Motors $25,000 0.20 1.95 General Electric $20,000 0.18 1.23 Pfizer Inc. $50,000 0.32 0.582