An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividend with little increase in earnings, and has a P /E ratio of 11. Stock Y has a market capitalization of $62 billion but does not currentlypay a dividend. StockY has a P /E ratio of 39. Stock Z, a housing industry company, has a market capitalization of $800 million and a P /E of 18

Some investors use the Sharpe ratio as a way of comparing the benefits of owning shares of stock in a company to the risks. The Sharpe ratio of a stock is defined as the ratio of the difference between the mean return on the stock and the mean return on government bonds (called the risk-free rate rf ) to the SD of the returns on the stock. The mean return on government bonds is rf = 0.03% per day. The table below describes the daily return of three stocks. Date                APPLE.   TESLA     GM 01/10/20        0.85%    4.46%     2.67% 02/10/20      -3.23%    - 7.38%    0.26% 05/10/20       3.08%      2.55%    1.64% 06/10/20      -2.87%     -2.75%    -1.81% 07/10/20       1.70%       2.73%    4.01% 08/10/20     -0.10%        0.15%    1.87% 09/10/20       1.74%       1.90%    -0.16% 12/10/20    6.35%          1.91%     0.16% 13/10/20     -2.65%        0.98%  -1.06% 14/10/20     0.07%        3.28%   -0.63% 15/10/20     -0.40%      -2.69%    2.90% 16/10/20      -1.40%     -2.05%…

An investor is interested in purchasing XYZ share which is currently trading at a market price of P200 in the stock market. An analyst determined that the said stock is overvalued as the market price is P50 more than its intrinsic value. 2% constant growth percentage is projected for this stock and a return of 12% is noted for stocks similar with XYZ. How much is the per share dividend expected to be declared at the end of the year?

You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility 35.10%, while Circumbendibus Wheels has volatility 58.30%. The correlation beteween the two shares' returns is 0.40. What percentage of your wealth should you allocate to Tinkle.com to minimise your portfolio's volatility?

Iron Corporation is evaluating an extra dividend versus a share repurchase. In either case, $18,000 would be spent. Current earnings are $2.00 per share, and the stock currently sells for $50 per share. There are 4,000 shares outstanding. Ignore taxes and other imperfections. a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What will the company's EPS and PE ratio be under the two different scenarios? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. Price per share Shareholder wealth b. EPS PE ratio Extra dividend Repurchase

Flemington Farms is evaluating an extra dividend versus a share repurchase. In either case, $15,000 would be spent. Current earnings are $2.80 per share, and the stock currently sells for $75 per share. There are 2,800 shares outstanding. Ignore taxes and other imperfections. The PE ratio will be ____ if the firm issues the dividend as compared to ____ if the firm does the share repurchase.

please respond to both. A company that has a stock price of $200 must have a higher market capitalization than a company with a stock price of $2.  True  False Stock A has a constant dividend growth rate of 5% and Stock B has constant dividend growth rate of 6%.  Both stocks have a dividend yield of 5%.  Which stock has the higher required return?     A     B     A=B     Not sure

At the present time, Tamin Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Tamin has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $13 per share. If the investors pay $100.15 per share for their investment, then what is Tamin's cost of preferred stock?

As an investor you have a required rate of return of 14 percent for investments in risky stocks. You have analyzed three risky firms and must decide which (if any) to purchase. Your information as below: (i) Use the dividend-growth model to estimate the value of each stock. Justify which (if any) should you buy.(ii) If you purchased Stock A, determine your implied rate of return.(iii) Determine the price that would be required to persuade you to purchase Stock A if your required rate of return were 10%.

Please provide assistance with the attached questions regarding Finance.