What is the annual return for 2015 on the following four investments? 13. Stock A Stock...
Homework Answers
13. Annual Return of Stock A =(Stock Price after 1 year -Stock
Price now +Dividend)/Stock Price now =(30-22+1.10)/22=41.36%
14. Bond A Return =(Bond Price after 1 year +Annual Coupon-Bond
Price now)/Bond Price Now =(1050+70-975)/975 =14.87%
15. Annual Return of Stock A =(Stock Price after 1 year -Stock
Price now +Dividend)/Stock Price now =(77-72+2.55)/72=10.49%
16. Bond A Return =(Bond Price after 1 year +Annual Coupon-Bond
Price now)/Bond Price Now
=(1200+80-1000)/1000 =28.00%
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What is the annual return for 2015 on the following four
investments?
13. Stock A
Stock...
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On January 1, 2015, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock ($20 par...
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Retained Earnings
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Mar. 1
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Apr. 1
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The stock has an annual dividend of Refer to the table below for DRK, Inc. The stock ne 93 cents per share and the dividend yield is 1.3070 Daily YTD % Change Close Change % Change 8.73% DRK, Inc. DRK 18,649,130 29 26 6. What was the closing price for this stock yesterday?! A) Less than $60.00 B) $60.00 to $70.00 C) $70.00 to $75.00 D) $75.00 to $80.00 E) More than $80.00 7) If the PE Ratio is 16...
On January 1, 2015, Geffrey Corporation had the following
stockholders’ equity accounts.
Common Stock ($20 par value, 61,000 shares issued and
outstanding)
$1,220,000
Paid-in Capital in Excess of Par—Common Stock
205,600
Retained Earnings
593,200
During the year, the following transactions occurred.
Feb. 1
Declared a $2 cash dividend per share to stockholders of record
on February 15, payable March 1.
Mar. 1
Paid the dividend declared in February.
Apr. 1
Announced a 2-for-1 stock split. Prior to the split, the...
On December 31, 2015, Dow Steel Corporation had 730,000 shares of common stock and 43,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $530,000 and $82,000 to common and preferred shareholders, respectively, on December 15, 2016 sold 60,000 common shares. Also, as a part of a 2015 agreement for the On February 28, 2016, Dow acquisition of Merrill Cable Company, another 24,000 shares...
An investor demands an annual return of 13 percent on her stock investments. She is considering the purchase of a stock that just paid a dividend (today) of $4.00 per share. Requirement 1: What is the current price of the stock if the investor expects the firm's dividends to grow at a constant rate of 6 percent per year indefinitely? (Do not round Intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current Stock Price Requirement 2: If...
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