The common stock of Escapist Films sells for $25 a share and offers the following payoffs next year: Dividend Stock Price Вoom $0 $18 Normal economy 1 26 Recession $3 34 The common stock of Leaning Tower of Pita Inc. is selling for $80 and offers these payoffs next year: Dividend Stock Price Вoom $8 $240 Normal economy 4 90 Recession Calculate the rate of return on a portfolio half invested in Escapist and half in Leaning Tower of Pita for each economic state. ) Calculate the expected rate of return and standard deviation of a portfolio half invested in Escapist and half in Leaning Tower of Pita.

The common stock of Leaning Tower of Pita Inc., a restaurant chain, will generate payoffs to investors next year, which depend on the state of the economy, as follows: Boom Dividend $8 Stock Price Normal economy Recession 4 0 $240 90 The company goes out of business if a recession hits. Assume for simplicity that the three possible states of the economy are equally likely. The stock is selling today for $80. a-1. Calculate the rate of return to Leaning Tower of Pita shareholders for each economic state. (Negative amounts should be indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places.) Boom Normal economy Recession Rate of return % % % a-2. Calculate the expected rate of return and standard deviation of return to Leaning Tower of Pita shareholders. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return Standard deviation % %

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Today, you sold your Riot Blockchain, Inc stock (ticker: RIOT) for $54.5/share. Last year, you paid $51.5/share for that stock. During the year, RIOT paid you $2/share in dividends. If inflation averaged 2.8% during the year, your approximate real rate of return on the RIOT investment is: a. 12.5 percent   b. 9.7 percent   c. 12.2 percent   d. 3.5 percent   e. 6.9 percent

Barton Industries expects next year's annual dividend, D1, to be $2.30 and it expects dividends to grow at a constant rate g = 4.9%. The firm's current common stock price, P0, is $25.00. If it needs to issue new common stock, the firm will encounter a 4.5% flotation cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places.   _____% What is the cost of new common equity considering the estimate made from the three estimation methodologies? Do not round intermediate calculations. Round your answer to two decimal places.   _____%

Problem 1: Nachman Industries just paid a dividend of Do = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?

The common stock of Escapist Films sells for $25 a share and offers the following payoffs next year: Boom Normal economy Recession Dividend $0 Stock Price $ 18 1 26 3 34 The common stock of Leaning Tower of Pita Inc. is selling for $80 and offers these payoffs next year: Boom Normal economy Recession Required: Stock Dividend Price $ 8 $240 4 90 0 0 Calculate the expected rate of return and standard deviation of a portfolio half invested in Escapist and half in Leaning Tower of Pita. All three economic scenarios are equally likely to occur. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return 42.50 % Standard deviation %

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Synovec Company is growing quickly. Dividends are expected to grow at a rate of 18 percent for the next 3 years, with the growth rate falling off to a constant 3 percent thereafter. If the required return is 9 percent and the company just paid a $2.90 dividend. what is the current share price? Multiple Choice O O $68.16 $74.85 $69.70 $71.91

Assume Silvio’s Steakhouse pays the dividend of $3.61 this year. For the next 30 years, the firm’s dividend will grow by 5.4%, then it will grow by 4.8% each year afterwards. The required rate of return for the firm’s industry is 11.6%. What is the present value of the firm’s stock under the Dividend Discount Model? Group of answer choices $50.32 $10.02 $55.33 $60.33