Assume the following data for Cable Corporation and Multi-Media Incorporated.Net incomeSalesTotal assetsTotal debtStockholders' equityCableCorporation$ 34,400364,000448,000237,000211,000Cable CorporationMulti-Media, Incorporateda. 1. Compute return on stockholders' equity for both firms.Note: Input your answers as a percent rounded to 2 decimal places.Return onStockholders'EquityMulti-MediaIncorporated$ 128,0002,700,000%%970,000468,000502,000 2. Which firm has the higher return?O Cable CorporationO Multi-Media Incorporatedb. Compute the following additional ratios for both firms.Note: Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimaplaces. Round your Sales/Total assets answers to 2 decimal places.Net income/SalesNet income/Total assetsSales/Total assetsDebt/Total assetsCable Corporation%%times%Multi-Media Incorporated%%times%

Return on Equity: ROE is a measure of profitability used in the ratio analysis of firms. It is…

Answered: a. 1. Compute return on stockholders'…

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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Suppose a stock had an initial price of $84 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $71.50. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What was the capital gains yield? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Only need last 2 parts of the problem.
Various options are provided as possible answers to the following questions.Choose the answer and write only the letter (A–D) next to the question number Return on owners’ equity is equal to:A. 17.31B. 17.31 : 1C. 17.31%D. 17.31 times
D
D (Solving a comprehensive problem) Use the end-of-year stock price data in the popup window, E, to answer the following questions for the Harris and Pinwheel companies. a. Compute the annual rates of return for each time period and for both firms. b. Calculate both the arithmetic and the geometric mean rates of return for the entire three-year period using your annual rates of return from part a. (Note: you may assume that neither firm pays any dividends.) c. Compute a three-year rate of return spanning the entire period (i.e., using the ending price for period 1 and ending price for period 4). d. Since the rate of return calculated in part c is a three-year rate of return, convert it to an annual rate of return by using the following equation: W S J-(₁. 1+ e. How is the annual rate of return calculated in part d related to the geometric rate of return? When you are evaluating the performance of an investment that has been held for several years, what Time 1 X 2 3 4 Time 1 3 2 3 4 #…
Question IV: Suppose S =$100, K =$95, r =8% (continuously compounded), t =1, o =30%, and 8=5%. Use an eight- period lognormal binomial tree to answer the following questions. You can also use Excel for this question. If you do so, please upload the Excel file separately with the detailed calculations. (a) Construct the stock tree. (b) Compute the prices of an European call option. (c) Compute the prices of an American put option.
There are 2 parts to this question please read and answer carefully using the table provided.
Suppose a stock index contains the stock of 3 firms: A, B and C The stock prices for the three firms are $33 $48 and $27. respectively. The firms have 115 million, 69 million and 119 million shares outstanding, respectively. If the index is price-weighted, calculate its initial value. (round your answer to 2 decimal places)
The account which increases equity is known as? A. Debit Account B. Credit Account C. Revenue D. Treasury Stock
14) Consider the following 2 tables in Database: Investor and Positions with respective columns. Investor InvestorID InvestorName Country *Assume there is a primary key on InvestorID Positions StockSymbol InvestorID ReportingDate Qty *Assume there is a primary key on StockSymbol, InvestorID, Reportingdate Positions means Stock holdings. Write a queries to a) Find all investors that have positions in more than one stocks on any reporting date. b) Output investors with their positions (they have ever had) and respective dates when they acquired those positions c) Investors that never had a position
Using the data in the following table,, estimate the: a. Average return and volatility for each stock. b. Covariance between the stocks. c. Correlation between these two stocks. a. Estimate the average return and volatility for each stock. The average return of stock A is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year Stock A 2010 2011 2012 2013 2014 2015 - 1% 6% 2% -5% 4% 6% Stock B 20% 9% 8% -3% - 5% 21% Print Done ☑ Clear

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a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places.