Investments: Financial Stocks During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share, was expected to yield 4% per year in dividends, and had a risk index of 3.0 per share, while CNA Financial Corp. (CNA) stock cost $40 per share, was expected to yield 2.5% per year in dividends, and had a risk index of 2.0 per share. You have up to $25,000 to invest in these stocks, and would like to earn at least $778 in dividends over the course of a year. (Assume the dividends to be unchanged for the year.) How many shares (to the nearest tenth of a unit) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio? Toronto Dominion Bank shares CNA Financial Corp. shares What is the minimum total risk index? (Round your answer to two decimal places.)

Investments: Financial Stocks During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share, was expected to yield 4% per year in dividends, and had a risk index of 3.0 per share, while CNA Financial Corp. (CNA) stock cost $40 per share, was expected to yield 2.5% per year in dividends, and had a risk index of 2.0 per share. You have up to $25,000 to invest in these stocks, and would like to earn at least $778 in dividends over the course of a year. (Assume the dividends to be unchanged for the year.) How many shares (to the nearest tenth of a unit) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio? Toronto Dominion Bank shares CNA Financial Corp. shares What is the minimum total risk index? (Round your answer to two decimal places.)

Name: Investments: Financial Stocks During the first quarter of 2015, Toron
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: Investments: Financial Stocks During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share, was expected to yield 4% per year in dividends, and had a risk index of 3.0 per share, while CNA Financial Corp. (CNA) stock cost $4

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

See similar textbooks

Similar questions

CB Winter Sports specializes in providing ski lessons to beginners. The company uses the allowance method to account for uncollectible accounts expense CB Winter Sports experienced the following four accounting events in Year 1: 1. Recognized $266,000 of revenue on account. 2. Collected $126,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $2,300, 4. Recognized uncollectible accounts expense, CB Winter Sports estimated that uncollectible accounts expense will be 3 percent of sales on account Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) The first transaction is shown as an example. Note: Enter any decreases to account balances and cash…
Deborah provides the following list for her CPA who is preparing her gift tax return. Which of the following will be included as a taxable gift? Payment to her grandmother of $20,000 to help her with her medical bills. Payment to Doctor’s Hospital for $35,000 to cover the medical bills of a friend. Payment to Northshore Medical School for $17,000 to cover her nephew’s tuition. $6,000 to her son to help cover his college expenses. Carole made the following transfers this year: She gave her friend, Paul, $23,000 to pay his tuition for law school. She made a $14,000 alimony payment of $20,000 to her ex-husband. She paid $20,000 to Diamond Shores Hospital for her friend Jackie’s medical bill. If these are the only gift transactions this year, what is the amount of Carole’s taxable gifts?
John is a finance director of Nadim Product PLC, a company which manufactures and sells bathroom product such as baths, sinks and toilet. These product are sold through a selection of specialist shops and through larger store, customers include professional plumbers and also ordinary householder who are renovating their houses themselves. The company operates at the lower end of the market and does not have a strong reputation for service. Sales have been slowly declining whereas those of competitors have been improving. In order to encourage increased sales the board of directors has decided to pay senior staff a bonus if certain target is achieved. The two main targets are based on profit levels and annual sales. Two months before the end of the financial year the finance director asks one of his staff to check through the order and account to assess the current situation. He informed that without a sudden improvement in sales before the year end the important sales target will not…
Which of the following projects would normally be accounted for in a capital projects fund? O A) The construction of a parking garage operated as an enterprise fund. OB) Payment of interest on bonds issued to finance the construction of a new city hall, OC) The construction of a police station addition. O D) Payment of principal on revenue bonds. Question 2 ( Siler City receives a trust donation for the purpose of maintaining flower beds in city parks, but the donor does not specify that the principal must be maintained. This type of trust would be most appropriately accounted for in a O A) Permanent Fund B) Special Revenue Fund OC) Private Purpose Trust Fund OD) General Fund.
Tesla’s net losses had begun to accelerate in 2014 and between 2014 and 2020, Tesla’s losses ranged from minimum of 294 million U.S. dollars in 2014 to maximum of 2.241 billion U.S. dollars in 2017. However, Tesla turned a full-year profit for the first time on record in 2020. Net income of 862 million U.S. dollars in 2020. In addition, as of December 2021, Tesla’s market cap had exceeded $1 Trillion, which makes Tesla the world's 6th most valuable company by market cap. (Check the table of the changes of Tesla market cap and stock prices, appendix 1). Comment and make an argument of how a company that was realizing losses till 2019 has turned to be what it is today explaining from your point of view what are the factors that made this change and whether Tesla is really worth this value or not!
Situation 1 You want to start an online clothing store and need information about the size of the market for the marketing section of your business plan. From an online search, you found that Americans spent $18.3 billion online for apparel, accessories, and footwear last year and that the forecast for their spending on these items in the coming year is $22.1 billion. You have also researched publicly traded apparel companies, like GAP, to discover trends in online sales for these firms. Situation 2 You recently visited with a friend who knew you had taken a small business course when you attended college. During your visit, she made the comment, “I plan to open a business this summer. I won't be applying for a bank loan to fund this company, so I don't have a business plan. Do I need one?” Situation 3 John Martin and John Rose decided to start a new business to manufacture noncarbonated soft drinks. They believed that their location, close to high-quality water, would give them a…
Webber Limited plans to maintain cash balance of $8000. The variance of its daily cash flow to date is $4,000,000. The cost to buy or sell the firm’s security is approximately $50. The daily interest is 0.025%. Calculate: The lower limit The spread The upper limit The return point
You are required to select a well-established financial institution with a regional or international presence and assess key functions including risk management and compliance. You are to present a written report based on the following: Risk management framework – Conduct an analysis of the risk management process/ framework implemented at the institution (including risk assessment and risk control mechanisms). You are required to report on key risks that the institution is exposed to and explain aspects of the framework, emphasizing the effectiveness of the risk management strategies used. Anti-Money Laundering and Terrorist Financing Strategies – Discuss with examples, the institution’s approaches/ strategies to combat money laundering and terrorist financing issues. Statutory legislation and compliance - Explain the importance of financial institutions meeting regulatory requirements. Comment on specific legislation that the financial institution must be compliant with.
What is educational about the article Wall Street Journal The Secret Oil-Trading Ring That Funds Russia’s War by by Joe Wallace? What is interesting about the article Wall Street Journal The Secret Oil-Trading Ring That Funds Russia’s War by by Joe Wallace? What is insightful about the article Wall Street Journal The Secret Oil-Trading Ring That Funds Russia’s War by by Joe Wallace? Article Link: The Secret Oil-Trading Ring That Funds Russia’s War -
Under which perspective of the balanced scorecard would classify cash flows?
The board of directors of Megacorp Berhad, a public listed company comprises of executive directors as well as independent and non-executive directors. The Chief Executive Officer (CEO) is also the chairperson of the board of directors. A study shows that the lack of separation of the CEO and the chairmanship of the board of directors has led to the board being aligned to the management rather than the shareholders despite the presence of the independent non-executive directors. In addition, the study also shows that companies which have CEO duality are likely to have lower shareholder returns. The independent non-executive directors of the company subscribe to the view that directors have a legally mandated fiduciary duty to their shareholders to maximize the profit of the company. Thus, to them, ethical standards are less important than legal standards in the pursuit of making profit. (a) Describe the specific contributions that independent non-executive directors could make to…
Using the data in the following table, calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately. Historical Stock and Dividend Data for Boeing Date Price Dividend Date Price Dividend 1/2/2008 86.62 1/3/2011 66.40 2/6/2008 79.91 0.40 2/9/2011 72.63 0.42 5/7/2008 84.55 0.40 5/11/2011 79.08 0.42 8/6/2008 65.40 0.40 8/10/2011 57.41 0.42 11/5/2008 49.55 0.40 11/8/2011 66.65 0.42 1/2/2009 45.25 1/3/2012 74.22 Return from January 2, 2008, to January 2, 2009 is how much? (Round to two decimal places.)