a)CAPM Return = Risk-free Rate + Beta*Market Risk Premium
= 0.4% + 0.85*6%
= 5.5%
b)Holding Period Return = (Selling Price – Purchase Price) + Dividend
= ($44 - $42)+$1.20
= $3.20
i.e. 3.20/42 = 7.62%
c)Since the required return is 5.5% and return on stock is 7.62%, the investor SHOULD INVEST in Coke Stock
Attach File Browse My Computer Browse Content Collection QUESTION 7 An investor is considering an investment...
Attach File Browse My Computer Browse Content Collection QUESTION 6 The drum has a weight of 100 lb and rests on the floor for which the coefficient of static Friction is us =0.5. If a 3 ft and b 4 ft, determine the smallest magnitude of the force P that will cause impending motion of the drum. FBD 5 points calculation 7 points Final answer 3 points Browse Content Collection Browse My Computer Attach File Save All Answers Click Save...
Attach File Browse My Computer Browse Content Collection Browse Dropbox Save Answer QUESTION 5 5 points (Extra Credit) This is a bonus question, but it is also good practice for IR Spectroscopy. It wouldn't hurt to give it a try :) Imagine that you conducted the reduction of benzophenone in class and proceeded to take the IR of your materials. You know that you can observe the success of a reaction by using Infrared Spectroscopy (IR) and comparing the spectra...
QUESTION 1 Synthesize 3-methyl-1-phenyl-1-butanone from benzoic acid using a Claisen condensation Attach File Browse My Computer Browse Content Collection QUESTION 2 What is the product of ethyl benzoate and ethyl-2-phenylacetate with NaOEU/EtOH followed by acid workup? Attach File Browse My Computer Browse Content Collection QUESTION 3 "Using an enamine, convert acetophenone to 1-phenylbutane-1,3-dione" Attach File Browse My Computer Browse Content Collection QUESTION 4 What's the best base to use for this reaction? NOTE: Reagents are missing. CO2Et EtOK MeOK
Browse My Computer Browse Content Collection QUESTION 9 Con la siguiente distribucion determine el valor esperado: Edad Frecuencia QUESTION 10 En la Universidad hay 300 estudientes que necesitan tomar probabilidad. Hay 30 de Ing. Industrial. Si cada salon tiene cubo de 25, cual es la probabilidad de que haya menos de 2 estudiantes de Ing. Industrial por salon? Determine Promedio y Desviacion Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Video Excel Online Structured Activity: Constant growth You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.00 a share at the end of the year (0 - $2.00) and has a beta of 0.9. The risk-free rate is 2.5%, and the market nsk premium is 5.0%. Justus currently sells for $46.00 a share, and its dividend is expected to grow at some constant rate, 9. The data has been collected in the...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.00 a share at the end of the year (D4 = $2.00) and has a beta of 0.9. The risk-free rate is 2.7%, and the market risk premium is 5.5%. Justus currently sells for $32.00 a share, and its dividend is expected to grow at some constant rate, g. The data has been collected in the Microsoft Excel Online file below. Open the...
this is all the information given Personal Financial Planning Mini-Case Jeff and Mary Douglas, a couple in their mid-30s, have two children - Paul age 6 and Marcy age 7. The Douglas' do not have substantial assets and have not yet reached their peak earning years. Jeff is a general manager of a jewelry manufacturer in Providence, RI while Mary teaches at the local elementary school in the town of Tiverton, RI. The family needs both incomes to meet their...