19. Given the information on Quatro Common stock. The stock currently sells for $41 per share. Given below the end of year price, and dividend per share depending on the state of the economy. The holding period returns of the three states the three states of the economy are: State of the economy Probability Dividend Stock Price Boom 20% $ 1.5 52.00 Normal growth 50% $ 1.00 2. 45.00 Recession 30% S 0.75 36.00 A) 30.48%, 15.21%, -10.36% O B) 30.48%, 12.19%, -10.36% C) 20.48%, 12.19%, 15.21% D) 20.48%, 10.36%, 15.21% E) None of the above

19. Given the information on Quatro Common stock. The stock currently sells for $41 per share. Given below the end of year price, and dividend per share depending on the state of the economy. The holding period returns of the three states the three states of the economy are: State of the economy Probability Dividend Stock Price Boom 20% $ 1.5 52.00 Normal growth 50% $ 1.00 2. 45.00 Recession 30% S 0.75 36.00 A) 30.48%, 15.21%, -10.36% O B) 30.48%, 12.19%, -10.36% C) 20.48%, 12.19%, 15.21% D) 20.48%, 10.36%, 15.21% E) None of the above

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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What's the return on stockholders equity for these years?
*Please solve using excel and explain formulas. Question: Here are forecasts for next year for two stocks: Stock A Stock B Return on equity 17 % 14 % Earnings per share $ 3.00 $ 2.50 Dividends per share $ 2.00 $ 2.00 a. What are the dividend payout ratios for each firm? b. What are the expected dividend growth rates for each stock? Assume dividend has a steady growth for both stocks. c. If investors require a return of 17% on each stock, what are their values?
Use the following stock table to find the most recent dividend. 52-WK Week's High Low Tick Vol. Sym 100s Name 16.88 8.78 Idno Tech ITX 32112 5.3 97 13.79 0.09 Yld P/E Last Chg. The most recent dividend for Idno Tech is Earnings Latest This Next Div Year Year Year Amt. 0.35 -0.62-0.01 0.09 ***
Review the following market information: Current Stock Market Return 11.25% Current T-Bill Price $979.43 Historic T-Bill Average Return 2.80% Historic Stock Market Average Return 8.10% Stock Beta 1.23 What is the required return (rounded to two places)?
None
Given the following stock quotation, find the highest price during the last year. (Refer to Exhibit 20–3.) Pfizer PFE 15.52 16.22 15.67 15.83 0.50 3.26 38,228,171 19.95 13.72 0.73 4.61 14.8 −12.00 A. $15.83 B. $16.22 C. $19.95 D. $38.23
A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 7%, and if investors require a (n) 11% rate of return, what is the price of the stock? $47.50 $49.00 $50.50 $52.00 $53.50
Historical Realized Rates of Return Stocks A and B have the following historical returns: Year 2012 -15.10% -14.90% 2013 21.50 27.00 2014 12.50 31.60 2015 -4.00 -6.10 2016 29.25 6.55 Calculate the average rate of return for each stock during the 5-year period. Round your answers to two decimal places. Stock A % Stock B % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Round your answers to two decimal places. Year Portfolio 2012 % 2013 % 2014 % 2015 % 2016 % Average return % Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places. rA rB Portfolio Std. Dev. % % % If you are a risk-averse investor then, assuming these are your only choices, would you prefer…
You've collected the following information from your favorite financial website. 52-Week Price Dividend Hi 77.40 Lo Stock (Dividend) Yield % PE Ratio Close Price Net Change 10.43 Acevedo .36 2.6 6 13.90 -.24 55.81 33.42 Georgette, Incorporated 1.54 3.8 10 40.43 -.01 131.10 50.24 35.00 70.35 YBM 2.85 3.2 10 89.14 3.07 13.95 Manta Energy .80 5.2 6 20.74 Winter Sports .32 1.5 28 15.43 ?? -.26 .18 According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20 percent. Suppose YBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent, indefinitely. Assume investors require a return of 13 percent on YBM stock. According to the dividend growth model, what should the stock price be today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Current stock price
P7-23 Integrative: Risk and valuation Given the following information for the stock of Foster Company, calculate the risk premium on its common stock. Current price per share of common $50.00Expected dividend per share next year $ 3.00Constant annual dividend growth rate 6.5%Risk-free rate of return 4.5%
Current price of Company X's stock is $100. The table below gives the data on end of the year prices and probabilities dependent on the state of the economy. Calculate the expected return for the stock. (E) Economy Probability End of the year price Growth .5 $130 Recession .5 $90 O a. 25% b. 10% O c. 15% O d. 20%

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