Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259277214
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 14, Problem 2QP
Summary Introduction
To determine: The total value of a portfolio.
Introduction:
A portfolio is the assemblage of financial assets like cash and cash equivalents, bonds, and stocks. Portfolios are generally under the control of investors. Experts or professionals manage the portfolio of the company.
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Research 3 stocks of your choice and answer the following questions.
1. What is the name of the stock?
2. What is the stock symbol?
3. What is its current price per share?
4. What was the 52 week high price for the stock?
5. What was the 52 week low price for the stock?
6. Why did you pick these stocks?
Using the data from the following table,calculate the return for investing in this stock from January 1 to December 31. Prices are after the dividend has been paid.
Stock Price
Dividend
Jan 1
$50.18
Mar 31
$51.11
$0.58
Jun 30
$49.56
$0.58
Sep 30
$51.93
$0.75
Dec 31
$52.53
$0.75
The return from January 1 to March 31 is
enter your response here.
(Round to five decimal places.)
Part 2
The return from March 31 to June 30 is
enter your response here.
(Round to five decimal places.)
Part 3
The return from June 30 to September 30 is
enter your response here.
(Round to five decimal places.)
Part 4
The return from September 30 to December 31 is
enter your response here.
(Round to five decimal places.)
Part 5
enter your response here%.
(Round to two decimal places.)
If you would receive dividends from year 1 to year n before selling the stock, how will you draw the timeline? Please describe, such as how many time points you have on the timeline, what is the cash flow on each time point.
Chapter 14 Solutions
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 14.1 - Prob. 14.1ACQCh. 14.1 - Prob. 14.1BCQCh. 14.1 - Prob. 14.1CCQCh. 14.2 - Prob. 14.2ACQCh. 14.2 - Prob. 14.2BCQCh. 14.2 - Prob. 14.2CCQCh. 14.3 - Prob. 14.3ACQCh. 14.3 - Prob. 14.3BCQCh. 14.5 - Prob. 14.5ACQCh. 14.5 - Prob. 14.5BCQ
Ch. 14 - What are the forms of cash dividends?Ch. 14 - Prob. 14.2CCh. 14 - Prob. 14.3CCh. 14 - Prob. 14.4CCh. 14 - Prob. 14.5CCh. 14 - Prob. 1CTCRCh. 14 - Prob. 2CTCRCh. 14 - Prob. 3CTCRCh. 14 - Prob. 4CTCRCh. 14 - Prob. 5CTCRCh. 14 - Prob. 6CTCRCh. 14 - Prob. 7CTCRCh. 14 - Prob. 8CTCRCh. 14 - Dividend Policy. During 2014, 207 companies went...Ch. 14 - Prob. 10CTCRCh. 14 - Prob. 1QPCh. 14 - Prob. 2QPCh. 14 - Prob. 3QPCh. 14 - Prob. 4QPCh. 14 - Prob. 5QPCh. 14 - Stock Splits and Stock Dividends. Bermuda Triangle...Ch. 14 - Prob. 7QPCh. 14 - Prob. 8QPCh. 14 - Prob. 9QPCh. 14 - Prob. 10QPCh. 14 - Stock Splits. In the previous problem, suppose the...Ch. 14 - Prob. 12QPCh. 14 - Dividend Policy. The Quick Buck Company is an...Ch. 14 - Expected Return, Dividends, and Taxes. The Gecko...Ch. 14 - Prob. 15QPCh. 14 - Prob. 1CCCh. 14 - Prob. 2CCCh. 14 - Prob. 3CCCh. 14 - Prob. 4CCCh. 14 - Prob. 5CCCh. 14 - Prob. 6CC
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- The following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. Company US Bank PepsiCo JDS Uniphase Duke Energy Dollar return Shares 900 800 1,700 800 Portfolio Return Percentage return Beginning of Year Price $44.30 59.88 19.68 27.85 What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.) Dividend Per Share $2.14 1.32 % 1.34 End of Year Price $44.23 63.35 17.46 33.61arrow_forwardUsing the data in the following table, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. The realized return for the entire period is%. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Stock and Dividend Data Price $31.49 $29.52 $30.58 $31.41 $36.79 $43.08 Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Dividend $0.17 $0.22 $0.21 $0.21 - Xarrow_forwardYou a portfolio manager. You have been provided the following information on stock prices and dividends. Based on the given information, what is the geometric average return on this stock? Please show all the calculations by which you came up with the final answer.arrow_forward
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