Question

You decide to form a portfolio with the following amounts invested in the following stocks. What is the expected return of th
Your firm recently paid a dividend of $4 to common stockholders. Dividends are expected to grow at 8% per year for the forese
Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,00
Last year, Cayman Corporation had sales of $30,000,000, total variable costs of $13,500,000, and total fixed costs of $5,000,
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Hi

As per policy we will solve only first question here.

1) Total amount invested = 7800+ 1200 +3000 + 3000

=$15,000

Total expected return = 13.5*7800/15000 + 14.5*1200/15000 + 15.8*3000/15000 + 18.1*3000/15000

=7.02 + 1.16 + 3.16 + 3.62

=14.96%

Hence second option 0.1496 is correct here.

Thanks

Add a comment
Know the answer?
Add Answer to:
You decide to form a portfolio with the following amounts invested in the following stocks. What...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT