Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Question
Chapter 11, Problem 9FPE
a)
Summary Introduction
To construct: An inventory of investment holdings
b)
Summary Introduction
To determine: The amount invested, annual income and values of investment.
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3. Below is a snapshot of some information about Microsoft Corporation from Yahoo! Finance on 10/16/2019.
B) What is the Microsoft stock price and the market cap?
C) Based on the information you collected in question (1), what is the total number of shares outstanding for Microsoft? (Hint: Market cap is the short name for “Market capitalization”. It represents the market value of a company’s total outstanding shares. It is equal to the stock price per share* total number of shares outstanding).
D)What is Microsoft dividend payment and dividend yield?
Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below. (Click on the following icon in order to copy its contents into a spreadsheet.)
Stock
Golden Seas
Jacobs and Jacobs
MAG
PDJB
Price/Share
($)
閘12 21 46 12
Number of Shares
Outstanding (millions)
1.14
1.46
26.23
7.91
Sibongile is considering investing in a newly listed company on the JSE, known as Abital Ltd. She comes to you for advice about whether to invest in their bonds or shares, and has collected the following information from the recently published financial statements:
Number of outstanding shares
10 000 000
Earnings
25 000 000
Payout ratio
35%
Cost of equity
11%
Current market price of one share
R10
Number of Bonds outstanding
4 000 000
Abital Ltd recently acquired a patent that expires in 3 years. Their earnings are therefore expected to grow at 20% during these 3 years, after which it will decline to a constant 5%. What is the intrinsic value of Abital ltd?
Chapter 11 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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- Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below. (Click on the following icon in order to copy its contents into a spreadsheet.) Stock Price/Share ($) Number of Shares Outstanding (millions) Golden Seas 13 1.21 Jacobs and Jacobs 23 1.2 MAG 41 32.87 PDJB 12 9.76arrow_forwardConsider the table shown below to answer the question posed in part a. Parts b and c are independent of the given table. Number of Share Market Capitalization ($ millions) 1547.66 (millions) Stock Price = Callaway Golf (ELY) Alaska Air Group (ALK) Yum! Brands (YUM) Caterpillar Tractor (CAT) Microsoft (MSFT) $ 16.36 $ 61.96 $ 85.13 $597.63 $ 91.27 94.6 123.4 7645.86 $ 28,305.73 $ 88,090.66 332.5 147.4 7,705.0 $703,235.35 a. The price of Yum! Brands stock has risen to $185. What is the market value of the firm's equity if the number of outstanding sha does not change? (Enter your answer in billions rounded to 3 decimal places.) O Answer is complete but not entirely correct. Market value $33,114.270 8 b. The rating agency has revised Catalytic Concepts' bond rating to BBB (use Table 2.2). What interest rate, approximately, would the company now need to pay on its bonds? (Enter your answer as a percent rounded to 1 decimal place.) Interest rate Ac Graw Hill 1 of 8 Prev Next > MacBook Air…arrow_forwardhoose a publicly traded company that interests you and find the price of its stock on your last birthday and yesterday. Calculate the difference in its stock value between yesterday and your last birthday. Calculate how much you would have made or lost if you had purchased 1000 shares of that stock on your last birthday and sold it yesterday. Show all your calculations in your response Company :Amazon stock price today: 129.33 stock price on last DOB 8/26/92: 136.55arrow_forward
- Question 1- Texas Instruments (TXN) (please include your Excel spreadsheet file!) Actual data for Texas Instruments common stock! Suppose on December 31, 2011 you purchased TXN stock at $29.11 per share. You hold TXN until December 31, 2021 when you sold it at $188.47 per share. During this holding period, you received the following annual dividends per share. Year Annual DPS Year Annual DPS 2012 $0.72 2017 $2.12 2013 $1.07 2018 $2.63 2014 $1.24 2019 $3.21 2015 $1.40 2020 $3.72 2016 $1.64 2021 $4.21 Using the above TXN stock data and using Excel spreadsheet, determine the average annual return for your TXN investment. Question 2 TXN stock price on December 31, 2020 was $162.70 per share. Calculate the 2021 annual "holding period return" (HPR). Show all work. Question 3 Using the table above, determine the average annual growth rate for TXN dividends per share for the period 2012-2021. Show formula, input, & calculation. Excel is optional.arrow_forward3. Using your iphone, you noticed that IBM was trading at a bargain price, so you decided to purchase 100 shares of stock that is traded on the New York Stock Exchange using your primary stock trading app. What kind of transaction was this? Primary market Secondary market Futures market Private Placement 4. P&G reported the following information for its fiscal year end: On net sales of $51.4 billion, the company earned net income after taxes of $6.5 billion. It had cost of goods sold of $25.1 billion and EBIT of $9.8 billion. Using the information in question 3, calculate the gross margin Using the information in question 3, calculate the operating margin (EBIT margin) Using the information in question 3, calculate the net profit marginarrow_forwardProblem-oriented Experience REAL WORLD CHALLENGE I. Review the different types of stocks and bonds. II. Write all the given and formulas that you use in each problem. III. Solve the problem below, show your complete 1. The RYX financial institution declared a SOLUTION and FINAL ANWER. dividend of 59 per share for its common stock. The market value of the stock is P176. Determine the stock yield ratio.arrow_forward
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- Thoughtful Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2024: (Click the icon to view the partial balance sheet.) Read the requirements. Requirement 1. Identify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has outstanding. common stock preferred stock preferred stock and common stock preferred stock and treasury stock Requirements 2. 1. Identify the different classes of stock that Thoughtful Comfort Specialists has outstanding. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? 3. () Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. 4. No preferred dividends are in arrears. Journalize the declaration of a $800,000 dividend at June 30, 2024, and the payment of the dividend on July 20, 2024. Use separate Dividends Payable accounts for preferred and common…arrow_forwardLL R You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry, LotsofDebt, Inc. finances its $36.00 million in assets with $33.00 million in debt and $3.00 million in equity. LotsofEquity, Inc finances its $36.00 million in assets with $3.00 million in debt and $33..00 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) LotsofDebt, Inc. LotsofEquity. Ino Calculate the equity multiplier. (Round your answers to 2 declmal places.) Equity multiplier LotsofDebt, Inc. LotsofEquity. Ine. Calculate the debt-to-equity. (Round your answers to 2 declmal places.) Debt-to-equity LotsofDebt. Inc. LotsofEquity, Inc. Mc <. Prev MED Type here to search DOOH F2 F4 F5 F7 F10 F11 F12 PrtScr 8- & 23 24 2 ) 4. 5. 9. 7. 8. %3D } 1arrow_forwardYou are an investment adviser. One of your clients approaches you for your advice on investing in equity sharesof Alpha Company. You have collected the following data:Earnings per share last year $5.00Payout ratio 0.30Return on equity 0.30Cost of equity capital 0.25The company plans to increase the payout ratio to 40% from year 6.Required:i) Estimate the price of an equity share of this company using an appropriate dividend discount modeland advise your client whether they should buy a share of the company.ii) Your client is keen to know whether there are any positive growth opportunities from theirinvestment. Explain to your client the meaning of this concept using appropriate calculations.arrow_forward
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