Please no hand writing solution for other wise down vote You bought a stock at $50 per share and it has increased to $74 and recently starting to tilt lower.You are concerned that the trend may be turning bearish. What is the 61.8 % Fibonacciretracement level?O $70.25$64.83$54.72$59.17

Stock markets are quite volatile and it is quite difficult that to predict the stock market and only…

Answered: You bought a stock at $50 per share and…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Normanton Mills stock is trading at $150 per share at the start of the year. It does not pay a dividend. If there is an equal probability that the return over the coming year will be -10%, +20% or +50%, what is the expected price at year end? a I do not want to answer this question. b $190 c $170 d $175 e $160 f $180
You are considering the purchase of a stock that yesterday announced EPS of $5.34. If you feel that earnings will decline by about 1.65% per year into the future and you require a return of 8.30%, what would you pay for the stock today? $81.63 $60.57 $53.67 $52.78
Suppose you are thinking of purchasing the SunStar’s common stock today. If you expect SunStar to pay $0.80 dividend at the end of year one and $1.6 dividend at the end of year two and you believe that you can sell the stock for $15 at that time. If you required return on this investment is 10%, how much will you be willing to pay for the stock? a. $13.95 b. $14.44 c. 14.19 d. $15.51
A stock is currently trading 50$. You want to buy it cheaper, placing a limit buy 47. Also, expecting that by year end the stock will rise to 70$ and then decline, you place a limit sell 70$.You were right about the direction of the stock price, it went directly to 75$. What is your current position?
7. The stock of the Madison Travel Co. is selling for $28 a share. You put in a limit buy or-der at $24 for one month. During the month the stock price declines to $20, then jumpsto $36. Ignoring commissions, what would have been your rate of return on this invest-ment? What would be your rate of return if you had put in a market order? What ifyour limit order was at $18?
How would I calculate this using excel? or a financial calculator? the common stock of clinton kneepads behaves rather strangely (as does its owner). it is up 3% one day and down 3% the next, without fail. what is the stock price after 200 days of such activity? assume it starts out at $20 a. 1.828 b. 19.50 c. 21.50 d. 15.57 e. none of the above
Suppose you have just purchased a share of stock for $58.50. You expect a dividend next period of $2.50 which will grow at a rate of 15% indefinitely. What must your expected rate of return be on the stock you have just purchased? Select one: A. 4.27% B. 15.38% C. 19.27% D. 19.91% E. None of the above
6 A preferred stock will pay a dividend of P2.75 in the upcoming year, and every year thereafter, i.e., dividends are not expected to grow. You require a return of 10% on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock. Group of answer choices P31.82 P27.50 P0.275 None of these is correct P56.25
another solution and answer for this problem What is the Value of the common stock? if the common stock has an annual dividend of $200 per share and the required return on common stock is 8% and assume to grow at a constant rate of 4% in dividends? choose the best answer: A. 3030.33 B. 3,333.33 C.3300.33 D. 3633.33
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. 0.6
A preferred stock will pay a dividend of $7.50 in the upcoming year, and every year thereafter, i.e., dividends are not expected to grow. You require a return of 10% on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock. $0.75 $7.50 $64.12 $56.25 none of the above
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 1

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You bought a stock at $50 per share and it has increased to $74 and recently starting You are concerned that the trend may be turning bearish. What is the 61.8 % Fibonace retracement level? $70.25 $64.83 $54.72 $50 17