1
Dividend = previous price-ex dividend price = 200-197 = 3
Please ask remaining parts seperately, questions are unrelated |
Please show work. 1. If stock price S200 falls to S197 on the ex-dividend date only...
Suppose you own a house where you live and a condo for rent. So the rent from the tenant of your condo is your income. The monthly rent is $1,500, but you have to pay taxes, maintenance fees, and insurance premium. They are $500 per month in total. Therefore, the net cash flow from this condo is $1000 per month. Assume the tax is a lump sum, not proportional to the value of a property. Assume there is no depreciation...
Please show work. 14. Suppose the prices of Stock A and B change over time as follows. t+1 t+2 Pt $100 Pt $100 There are two investment scenarios Stock A Stock B +1$200 Pt+1$50 Pt+2- $100 Pt+2 -$100 a) Invest S100k in stock A and $100k in stock B at time t. Then sell them at time t+2 b) Invest $100k in stock A and $100k in stock B at time t. Then rebalance the portfolio with (0.5, 0.5) weight...
Question 10 1 pts What is the price of a stock who just paid a dividend of $2.00 per share assuming the following: • the growth rate in the dividend is expected to be 20% per year for 3 years • the normal growth rate in the dividend (i.e. after 3 years are up) is 5% per year and will go on indefinitely • the appropriate discount rate is 9% Question 2 1 pts The discounted cash flow model for...
Please Fill In The Chart and show work! Mr. A, who has a 35 percent marginal tax rate, must decide between two investment opportunities, both of which require a $50,000 initial cash outlay in year 0. Investment 1 will yield $8,000 before-tax cash flow in years 1, 2, and 3. This cash represents ordinary taxable income. In year 3, Mr. A can liquidate the investment and recover his $50,000 cash outlay. He must pay a nondeductible $200 annual fee (in...
Please show work. thank you. Sunrise Inc. is considering a capital investment proposal that costs $227,500 and has an estimated life of four years and no residual value. The estimated net cash flows are as follows: Year Net Cash Flow 1 $97,500 2 $80,000 3 $60,000 4 $40,000 The minimum desired rate of return for net present value analysis is 10%. The present value of $1 at compound interest rates of 10% for 1, 2, 3, and 4 years is...
please answer all O Answer all questions .30 points Circle the letter for the correct answer If an asset is sold for less than is depreciation book value, it is taxed at the capital gain tax rate taxed at ordinary income tax rate. subject to tax savings due to capital loss d. not subject to any income tax consideration Changes in the firm's cash flows that are a dirst consequence of accepting a project are erosion cash flows e Net...
The XYZ Company currently (that is, as of year 0) pays a common stock dividend of $1.5 per share. Dividend are expected to grow at a rate of 11% per year for the next 4 years and then continue growing thereafter at a rate of 5% per year. What is the current value of a share of Seneca common stock to an investor who require a 14% rate of return? Hint: The dividend growth rate g(t) changes during the history....
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $69,000 $69,000 $69,000 Cash flow from operations Year 1 60,000 34,500 69,000 Year 2 9,000 34,500 Year 3 33,500 33,500 Disinvestment 0. Life (years) 3 years 3 years 1 year(a) Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and...
1. According to the constant dividend growth model, which of the following is true A. the dividend yield is the same as the capital gains yield. B. the constant growth rate is the same as the dividend yield. C. the capital gains yields is the same as the constant dividend growth rate. D. The price growth rate is the same as the dividend yield. 2. Which of the following is true about stock returns? A. the dividend yield must always...
Ranking Investment Proposals:Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $81,000 $81,000 $81,000 Cash flow from operations Year 1 80,000 40,500 81,000 Year 2 1,000 40,500 Year 3 41,000 41,000 Disinvestment Life (years) 3 years 3 years 1 year 0 (a) Select the best investment proposal using the payback period, the accounting rate of return on...