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% O 20.31% 66.98% 60.45%

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% O 20.31% 66.98% 60.45%

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.5.2MBA: Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the...

See similar textbooks

Similar questions

Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, the required return on the stock is 11.5%, what is the value of the stock?
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
Price 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
Current Price $100 Expected Price in 1 $107.98 year Beta 2.0 Expected Dividend T-year T Bond yield $4.51 Market Risk Premium 5.52% 0.679% What is the stock's holding period return? Convert to a percent and then use 2 decimal places.
Question content area top Part 1 (Common stock valuation) Assume the following: • the investor's required rate of return is 14.5 percent, • the expected level of earnings at the end of this year (E1) is $6, • the retention ratio is 40 percent, • the return on equity (ROE) is 14 percent (that is, it can earn 14 percent on reinvested earnings), and • similar shares of stock sell at multiples of 6.742 times earnings per share. Questions: a. Determine the expected growth rate for dividends. b. Determine the price earnings ratio (P/E1). c. What is the stock price using the P/E ratio valuation method? d. What is the stock price using the dividend discount model? e. What would happen to the P/E ratio (P/E1) and stock price if the company increased its retention rate to 80 percent (holding all else constant)? What would happen to the P/E ratio (P/E1) and stock price if the company paid out all its earnings in the form of dividends?…
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%
X company stock price was $10 at the beginning of 2018, $14 at the beginning of 2019, $15 at the beginning of 2020, and $19 at the ending of 2020. Based on the previous information what will be the coefficient of variation for the stock assuming that the returns are equally probable. a a. 28.4% O b. 36.3% Oc. 67% O d. 73.2% Clear my choice
10-7 What is the geometric average return of a stock with the following share price history? Year Share price 1 $20 2 $22 3 $24 4 $26 5 $28 Select one: a. 9.09% b. 8.78% c. 8.33% d. 7.69% e. 6.48%
Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the following data (in milllions) for a recent year: Compute the return on stockholders equity. Round to one decimal place.
Question 48 The S&P 500 Index returned: 5.1%, 6.9% , -7.3%, -8.1%, 7.2% Over the same period, BergAwesome Inc. had the following returns: 4.8%, 7.3 % , -6.2%, -11.7%, 8.6% Which of the following statements best represents BergAwesome? (%)? (recurring content question) BergAwesome is an appropriate candidate for one seeking a little above average risk. BergAwesome is an appropriate candidate for an investor willing to bear average risk. None of the choices are correct. BergAwesome is an appropriate candidate for an investor seeking high risk. O BergAwesome is an appropriate candidate for an investor with low tolerance for risk.
1. stock EPS share price Growth rate A $0.30 $4.80 4% B $0.40 $5.50 6% C $0.50 $7.50 7% D $0.60 $8.00 5% Using the PEG ratio, rank the stocks in order of investment opportunity, the first having the best, the last having the worst. A. C,B,D,A B. A,D,B,C C. C,D,B,A D. B,D,C,A 2.Which of the following not true regarding financial statement A.Group financial statement be produced by each subsidiary as well as the parent entity B.Profit must be separated between members of the parent company and that of minority interest C.Minority interest share of equity represents that ‘part of a subsidiary’s equity not allocated to members of the parent company. D.Group financial statements must be produced by the parent entity only. E.None of the options provided.
onsider the following information on large-company stocks for a period of years. Arithmetic Mean Large-company stocks 12.3 % Inflation 3.6 a. What was the arithmetic average annual return on large-company stocks in nominal terms? (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 arithmetic average annual return on large-company stocks in real terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)