Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $2 today and then you sold it for $95. What was your dividend yield and capital gains yield on the investment?

Q: Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in…

A: If the present value of cash flow is more than the price of the stock then the investment will be…

Q: You purchased a stock at a price of $22.  A year later the stock is worth $35, and during the year…

A: Hence, return on the investment is $14.5.Return on investment is calculated by adding capital…

Q: Kunal Nayyar from California, had $50,000 in investments at the beginning of the year that consisted…

A: Weighted average cost of capital WACC gives the firms combined cost of capital, including the…

Q: City Street Fund has a portfolio of $450 million and liabilities of $10 million.a. If 44 million…

A: Part (a): Answer: Net asset value is $10

Q: What is the current value of the common stock of Clump Dump Kitty Litter, Ltd., if you know the…

A: Net Present Value (NPV) is a method of capital budgeting which is used for calculating the…

Q: You just purchased a share of SPCC for ​$95. You expect to receive a dividend of ​$7 in one year. If…

A: Total return includes dividend yield and capital gain yield

Q: hat is your expectation of the market P/E ratio?

A: P/E Ratio: It is the ratio of the firm's share price to its EPS (earnings per share). A higher P/E…

Q: Now imagine that you bought a mutual fund that had a beginning NAV of $10 per share. It paid…

A: NAV refers to the net asset value of the mutual fund. Given that;Beginning NAV is $10Dividends paid…

Q: I need an answer for this specific question please LCT Computers is listed on the Alternative…

A: As per the dividend growth model (DGM), the cost of equity is determined by accounting for the…

Q: If you have a choice to invest your 1 million dollars in bonds or stocks where are you going to…

A: Solution- It's time for your cash to invest. thus how precisely can this cash be allocated? after…

Q: Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n) 6% interest rate…

A: Actual amount I have is $10,000 Borrowed amount is $10,000 Interest rate is 6%(on borrowed amount)…

Q: Sarah just received a letter from a major stockholder. The stock-holder asks about the company’s…

A: Dividend Payout Ratio is ratio of Dividend paid per share to Earnings Per Share of company. Earnings…

Q: problems should be solved by using a financial calculator or MS excel spreadsheet. Accordingly, you…

A: Stock price = $ 60.25 Required return = 10.25% Growth rate = 7.00%

Q: Five years ago, a hedge fund started with $200 million of assets under management and generated an…

A: (a) Time-Weighted Rate of Return ( TWR ) TWR = (1+HPR1)×(1+HPR2)×......×(1+HPRn)-1 where, TWR = Time…

Q: Over the past 3 years, your stock fund earned returns of 10%, -8%, and 12%.  If you initially put…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount invested…

Q: ou are an active investor in the securities market and you have established an investment portfolio…

A: Capital gain is determined by deducting the initial value of stock or asset from the net proceeds of…

Q: Suppose a man invested $250 at the end of 1900 in each of three funds that tracked the averages of…

A: The return on each fund will be calculated using the FV formula assuming the returns are compounded.…

Q: Suppose that your estimates of the possible one-year returns from investing in the common stock of…

A: Calculation of expected return and standard deviation: Excel workings:

Q: You are considering preferred stock that pays a quarterly dividend of $1.50. If your desired return…

A: Desired return=3%Quarterly dividend=$1.50

Q: Joe Corp is debating raising more capital of some kind. In order to advise them you first need to…

A: In the given question we need to calculate the Weighted Percentages of each type of security for the…

Q: You are considering how to invest part of your retirement savings. You have decided to put $600,000…

A: Amount invested in Goldfinger = 61% of $600000 = $366000 Amount invested in Moosehead = 12% of…

Q: Suppose that you need to raise new financing for a large investment project. To keep your capital…

A: 1) As per Dividend Discount Model Cost of equity = (D1/P0) + g Where, D1 = Expected Dividend i.e. $3…

Q: Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: You are interested in investing in a company that expects to grow steadily at an annual rate of 6…

A: Stock price = Dividend * (1+ growth rate ) / ( required rate of return - growth rate )

Q: Suppose you have $1 short $5000 worth of Kinston stock and invest the proceeds from your short sale,…

A: Solution:- Return of the portfolio means the return earned on the total money invested. So, return…

Q: Suppose that your estimates of the possible one-year returns from investing in the common stock of…

A: A statistical measure that represents the variation in the return on the stock is term as the…

Q: Suppose you plan on purchasing JP Morgan Chase stock in one year, right after the $1.40 dividend is…

A: Dividend yield is the yield which is derived from the amount of dividend which is going to be…

Q: capital of some kind. In order to advise them, you first need to calculate the WACC. Currently, the…

A: in this you have to calculate value of each and total value and than find out weight of each.

Q: Assume you start an investment account by purchasing international corporate stocks with $1,000 now,…

A: International stocks are those stocks which are traded in more than one stock market in the world.…

Q: A good stock-based mutual fund should earn at least 10% per year over a long period of time.…

A: Mutual Fund It is a professional managed fund which pools money from different investors and invest…

Q: A good stock-based mutual fund should earn at least 10% per year over a long period of time.…

A: Mutual Fund is a professionally managed fund made up of a pool of money collected from many…

Q: You are considering how to invest part of your retirement savings.You have decided to put$100,000…

A: Given: Particulars Amount Actual price Price change Investment $100,000     Gold finger 55%…

Q: Suppose you invest $5,000 into a mutual fund that is expected to earn a rate of return of 7%. The…

A: Mutual Fund is an investment option where large number of investors put their investment amount…

Q: You are interested in buying the preferred stock of a bank that pays a dividend of RM1.80 every…

A: Preferred shareholders have a special right over equity shareholders. Preferred shareholder received…

Q: You are the investment manager for Global Assets Investments Company's mutual fund and you have…

A: Solution: (i). You pay cash for the stock : No. of the shares that we will able to buy =…

Q: You are considering how to invest part of your retirement savings. You have decided to put $400,000…

A: To calculate the new value of portfolio, number of shares bought of each stock is calculated. Number…

Q: ou are considering how to invest part of your retirement savings.You have decided to put $600,000…

A: The portfolio is a mixed of more than one securities where the investor has invested his/her amount…

Q: You expect that Microsoft will pay a dividend of $1.50 in one year, $1.75 in two years, and $2.00 in…

A: Dividend Discount Model(DDM) is an approach to calculate current value of a stock by discounting the…

Q: You are considering how to invest part of your retirement savings. You have decided to put $240,000…

A: The portfolio refers to the combination of different securities from different companies or…