average excess return earned by long-term government bonds and small company stocks respectively?

A firm just paid its annual dividend of $5.50 per share. The stock market price of $58.25 and a beta of 1.15. The return on the U.S. Treasury bill is 2% and the market risk premium is 9%. What is the cost of equity?

Using the following information about Drew Co. Inc. and the market (SPY), what is the Weighted Average Cost of Capital for DCI? Drew Co. Inc DCI Stock Price # shares Outstanding Corporate Tax Rate = Risk-Free Rate 10 yr Zero Coupon Bond 20 Yr (semi-annual,) Bond Coupon Rate of 20yr bond Preferred Shares Pref. Payment Rate Stock Returns Time DCI SPY 1 0.03 0.05 23 0.25 0.18 0.1 0.02 4 0.08 0.06 Par Value Time left 3:53:55 80.80 250,000 40.00% 3.00% Mkt Price (Quoted % of Par) 10,000,000 50.00 10,000,000 70.00 5.00% 10,000,000 131.00 12.00%

Suppose a company just paid dividnd of $2.19.The dividend is expected to grow at 5.99% each year. If the stock is currently selling for $102.09, what is the requird rate of return o the stock?

Use the data in the tables below to answer the following questions: Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2017. Average Premium Portfolio Treasury bills Treasury bonds Common stocks Average Annual Rate of Return (%) (Extra return versus Treasury bills) (%) 3.8 5.3 11.5 1.5 7.7 Standard deviation of returns, 1900-2017. Standard Portfolio Deviation (%) Treasury bills 2.9 Long-term government bonds 9.0 Common stocks 19.7 a. What was the average rate of return on large U.S. common stocks from 1900 to 2017? b. What was the average risk premium on large stocks? c. What was the standard deviation of returns on common stocks? (Enter your answer as a percent rounded to 1 decimal place.) a. Average rate of return 11.5 % b. Average risk premium 7.7 % C. Standard deviation of returns 19.7 %

Southern Markets recently paid an annual dividend of $2.77 on its common stock. This dividend increases at an average rate of 4.4 percent per year. The stock is currently selling for $38.67 a share. What is the market rate of return?

Which one of the following categories has the widest frequency distribution of returns for the period 1926-2014?   Multiple Choice   Small-company stocks   U.S. Treasury bills   Long-term government bonds   Inflation   Large-company stock

Using arithmetic means, what is the risk premium for small company stocks? What is the risk premium for longterm corporate bonds?

The Vanguard Windsor II mutual fund had a net asset value of $15.07 at the beginning of 1992 and $24.04 at the beginning of 1997. What was the approximate (rounded up nearest %) average annual growth rate in this measure over this period?   A)8%   B)60%   C)10%   D)18%   E)15%

Krell Industries has a share price of $21.92 today. If Krell is expected to pay a dividend of $1.11 this year and its stock price is expected to grow to $24.16 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is %. (Round to one decimal place.) %. (Round to one decimal place.) The total return is %. (Round to one decimal place.) The capital gain rate is