$ 64.83 71.70 $.70 .75 77.50 63.77 .81 74.11 84.75 .90 .97 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 1234 56
Q: 11. What is the present value of a loan that calls for the payment of OMR500 per year for six years ...
A: present value of annuity formula: PVA=A×1-11+rnrwhere,A=annuityr=raten=number
Q: Oliver owes GH¢500 due in 4 months and GH¢700 due in 9 months. What singlepayment (i) now, (ii) in 6...
A: The present value of the amount will be considered on the basis of future value discounting over the...
Q: Ferryland Inc. is leased in perpetuity at $ 11250 due at the beginning of each month. If the money i...
A: Perpetuity refers to series of equalized payments that are made either at start or end of definite i...
Q: A $7,000 bond that carries a 4.00% coupon rate payable semi-annually is purchased 8 years before mat...
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of...
Q: Ferryland Inc. is leased in perpetuity at $ 11250 due at the beginning of each month. If the money i...
A: The present value of the perpetuity annuity due is the current worth of a cash flow series receivabl...
Q: AAC Inc. eamed $3.00 per share. It paid $160 in dividends per share. Its return on equity is 129e. F...
A: Financial management consists of directing, planning, organizing and controlling of financial activi...
Q: The risk-free rate is 4%. The market risk-premium is 7%. The beta is 20. What is the expected rate o...
A: Financial statements are statements which states the business activities performed by the company . ...
Q: To purchase a house for $215 000, you make a 15% down payment and finance the rest with a mortgage a...
A: Given, Purchase Price = $215,000 Down Payment = 15% of $215,000 = $32,250 Loan Amount = $215,000-$32...
Q: 6. Determine the present values if OMR5,000 is received in the future (i.e., at the end of each indi...
A: The time value of money is used for computing the present and the future values of a given sum of mo...
Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using...
A: given data amount financed = $18400 time period = 72 payments monthly payment = 426.08
Q: Assume you are proprietor of any firm you like. Briefly describe the products or servicesyour firm w...
A: If I am the proprietor of a Rice Mill, which procure the paddy from farmers and process paddy to the...
Q: Help me fast with detail explanation
A: profit on call is expired price minus strike price minus option premium paid.
Q: The first cost of a certain piece of equipment is 40,000OMR. It will have an annual operating Fost o...
A: Given: Initial cost =40000 OMRAnnual operating cost =10000 OMRSalvage value =6000 OMRLife (n)= 5 yea...
Q: Married Filing Jointly If Taxable Income Is Between: Then the Tax Due Is: $0 - $0 - $19,400$1...
A: Since they are having a jointly taxable income of $75,000. They are falling in the tax slab of $19,4...
Q: Assuming annual interest rates on comparable investments are 3,5%. What annual income could be expec...
A: Interest Rate= 3.5% Time Period of Annuity = 25 years Savings invested in annuity = 140,000
Q: Interest premium. Shaky Company has just issued a five-year bond with a yield of 9%; Stable Company ...
A: Companies issue bonds as a means of raising capital at better rates and for longer terms than they c...
Q: Cost of debt using the approximation formula For the following $1,000-par-value bond, assuming annua...
A: The appropriate cost of debt should be the cost of debt-adjusted for taxes, that is, the after-tax c...
Q: find the present value of a 2 year bond that pays a semi annual coupon has a coupon rate of 6 percen...
A: Bond is a long-term debt instrument that is used by organizations to raise debt funds from public. B...
Q: Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and l...
A: 4) Amount that SMPC should pay = Present value of monthly payment @11% (converted to monthly rate) ...
Q: You have been hired as a financial analyst of a firm and your team is working on an independent asse...
A: A ratio analysis is a study of line items in a company's financial statements. Ratio analysis is use...
Q: QUESTION 12 When interest rates fall, the present value of fixed future cash flows: a. Increases. b....
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want...
Q: Present value with periodic rates. Sam Hinds, a local dentist, is going to remodel the dental recept...
A: Answer Cost of equipment = $22,000 Interest rate = 9.5% Quarterly interest rate =(9.5% /4 ) 2.375% N...
Q: You have invested $1,000 in a risky asset with an expected rate of return of 0.17 and a standard dev...
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts fo...
Q: 4. Thomas Plc generated $50 million in net income during the year on book equity of $300 million. Th...
A: Equity reinvestment rate is the amount of net income reinvested in the company.
Q: 7. Free Cash Flow to Equity can be less than net income.(true or false with reason) 8. An increase i...
A: Cash flow referred as the net value of cash and cash equivalent transferred as in and out of busines...
Q: How many years will it take $7400 to quardruple at an effective rate of 4.25%?
A: Using the Goal Seek function Excel
Q: Raymond borrowed GH¢1000 on Jan 15, 1995, at 16%. He paid $350 on April 12, 1995.GH¢20 on August 10,...
A: The borrowing amount needs to apply interest over the period of time. This is known as the cost of ...
Q: For any cash flow the below statement is: Pequivalent> Fequivalent Select one: O False
A: Cash flows are regular amount which gets from an investment.
Q: How much will $5,000 to be received in 10 years be worth today if the interest rate is 7%?
A: A study that proves that the future worth of the money is lower than its current value due to severa...
Q: Problem #2. The budget planners for Mountain View have determined that $3,724,000 will be needed to...
A: Given: Required budget =$3724000Assessed property value =$72700000
Q: Mention the net amount of 'Source' or 'Use' of cash when a fixed asset having book value of $15,000 ...
A: Income statement is also called as profit and loss statement. It focuses on company’s revenues and e...
Q: a) Company A agrees to enter into an FRA agreement with Company B in which Company A borrows $ 40...
A: (i) Interest rate at which both the countries agrees is the interest on trade date that is 0.89% per...
Q: 2.2 Joseph asked you to prepare the financial statements required by the bank, so he can start the l...
A: Loan by bank required clear balance sheet and profit making company so it is necessary to have good ...
Q: Sent value With penödic rates. Sam Hinds, a local dentist, is going to remodel the dental reception ...
A: Amount Financed = $ 22,000 Interest Rate (r) = 9.5% Years = 9 Interest rate if payment made quarter...
Q: You observe the 9-day moving average on your chart has moved above the 26-day moving average, after ...
A: Moving Average(MA) shows average change in variables over definite period. In finance, MA are used b...
Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments...
A: some borrowers who take installment loan wishes sometimes to prepay installments, so they are eligib...
Q: which one is correct? QUESTION 8 Exhibit 7.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLE...
A: The capital asset pricing model (CAPM) is the model which shows the relationship between the systema...
Q: 9. Assume you are planning to invest OMR5,000 each year for six years and will earn 10 percent per y...
A: Answer
Q: Ferryland Inc. is leased in perpetuity at $ 11250 due at the beginning of each month. If the money i...
A: The present value is the value of the sum received at time 0 or the current period. It is the value ...
Q: Please help me ....... see image
A: in this problem you have to calculate discounted price of machine and calculate all expenses and tot...
Q: You purchased the stock of Sargent Motors at a price of $75.75 one year ago today. If you sell the s...
A: Holding period return is the return from a financial asset for keeping it or holding it over a perio...
Q: the par va When the is higher than the coupon rate, the bond sells at a O a. time to maturity; premi...
A: Price of depends on coupon rate and YEILD to MATURITY.If they are equal than bond trade at par value...
Q: Cost of preferred stock Determine the cost for the following preferred stock. (Click on the icon her...
A: Given, Par value = $110 Sale Price =$105.60 Flotation Cost = $8.8 Annual Dividend = 11% Annual Divid...
Q: #26 The market price of a stock is $21.68 and it is expected to pay a dividend of $1.13 next y...
A: Stock Price is discounted value of future benefits such as dividends, stock price that an investor w...
Q: Blue Sky Corporation is evaluating the proposed acquisition of a new production machine. The machine...
A: Required rate of return is the minimum rate of return that is needed by the company from its investm...
Q: name three economic factors that affect financial activities.
A: There are different factors affecting financial activities such as economic, political, etc. economi...
Q: The effective annual interest rate, i, has been determined to be 26.82%, compounded monthly. Calcula...
A: Maintenance expenses are those expenses which are incurred for the maintenance or repairing an asset...
Q: The effect of tax rate on WACC K. Bell Jewelers wishes to explore the effect on its cost of capital ...
A: Given:
Q: years. What will be the value of Matt's account in 5 years with his quarterly payments if he is earn...
A: Given, Periodic Payment = $30 per quarter No.of years to start college = 5 years No.of quarters to...
Q: Find the PV of an annuity that grows at a quarterly rate of 2% for the next 50 years. Assume that t...
A: PV of this growing annuity can be computed using the following formula : PV=PMT×(1-(1+g)n×(1+i)-ni-g...
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
- Question 3 The price history of stock ABC from year 0 to year 2 is as follows: Po P₁ P₂ $50 $40 $60 a. What are the holding-period returns of stock ABC for the first year, for the second year, and for the entire period? b. What are the arithmetic and geometric average returns over this 2-year period? c. The price and dividend history of stock XYZ from year 0 to year 2 are as follows: Year Price Dividend 0 $100 1 ? $0 2 $100 $8 The price of stock XYZ in year 1 is not known. The holding-period return of stock XYZ in the second year (from year 1 to year 2) is 20%. What is the capital gains yield in the second year?Problem 12-16 Arithmetic and Geometric Returns [LO1] A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.27 23456 2 48.25 $.45 3 57.17 .48 4 45.25 .60 5 52.17 .65 .73 6 61.25 What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return 9.56% Geometric average return %QUESTION 9 Stock Price in one year time ($) 92 Consider the following information about Delta Corporation: Current Stock Price ($) Probability (Pr) 44% 65 76 36% 57 20% The standard deviation of the return on Delta Corporation is closest to: O 47.26% 20.31% 66.98% 60.45%
- Question one Suppose you have the following information from Muscat stock market Stock Share outstanding Base day Closing price Second day closing price Salalah company 18 3 2.8 Dhofar power company 26 2.8 3.1 Oman company 10 4.1 2.1 Dhofar bank 28 3 1.8 Calculate 1. Price weighted index 2. Value weighted index plz use the formula shows in the picturesProblem 10-20 Arithmetic and Geometric Returns A stock has had returns of 12 percent, 30 percent, 17 percent, −18 percent, 30 percent, and −7 percent over the last six years. What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)What is Stock X's geometric returns if it has the following returns? Year 1 8% Year 2 - 5% Year 3 10% Year 4 - 6% Year 5 15% a. 4.1%. b. 5.2% c. 6.8% d. 8.5%
- Problem 8-1Expected return A stock's returns have the following distribution: Demand for theCompany's Products Probability of ThisDemand Occurring Rate of Return IfThis Demand Occurs Weak 0.1 -30% Below average 0.1 -14 Average 0.3 11 Above average 0.3 20 Strong 0.2 45 1.0 Calculate the stock's expected return. Round your answer to two decimal places. Calculate the stock's standard deviation. Round your answer to two decimal places.% Calculate the stock's coefficient of variation. Round your answer to two decimal places. I'm struggling with the standard deviation and coefficient of deviation. Can you please post the formulas to calculate these in excel? Thank you!Problem 9.16 The preferred stock of Axim Corp. is currently selling at $48.95. If the required rate of return is 11.6 percent, what is the dividend paid by this stock? (Round answer to 2 decimal places, e.g. 15.25.) Dividend paidPrice Forward Dividend 1T Target Est $75.20 $0.80 $87.76 Given the information in the table, if t he stock has a required return of 14.8%, what is the value of the stock
- Question one Suppose you have the following information from Muscat stock market Stock Share outstanding Base day Closing price Second day closing price Salalah company 18 3 2.8 Dhofar power company 26 2.8 3.1 Oman company 10 4.1 2.1 Dhofar bank 28 3 1.8 Calculate 1. Price weighted index 2. Value weighted index plz show stepsDay 5/4/2020 5/5/2020 5/6/2020 5/7/2020 5/8/2020 LMT HPR 345.82 321.56 -7.015% 337.21 4.867% 341.11 1.157% 355.32 4.166% S/9/2020 362.31 1.967% 12. What is WEC stock Total Geometric Return based on the table above? A. 1.028% В. 3.249% C. 4.768% D. 5.141% E. 10.476%QUESTION 9 Use the data in the table shown below. What is the geometric average return over the span of three years? Date 12/31/2018 12/31/2019 12/31/2020 12/31/2021 O a. 28.7% O b.7.5% c.9.5% O d. 8.9% Price $43.00 $45.60 $42.60 $52.50 Dividend $0.80 $0.80 $0.90