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Check my work Assume that at the beginning of the year, you purchase an investment for...
Assume that at the beginning of the year, you purchase an investment for $10,500 that pays...
Assume that at the beginning of the year, you purchase an investment for $10,500 that pays $33 annual income. Also assume that the investment’s value has increased to $11,400 at the end of the year. (a) What is the rate of return for this investment? (Enter your answer as a percent rounded to 2 decimal places.) (b) Is the rate of return a positive or negative number? Positive or Negative?
Check my work Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the compa...
Check my work Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $210,000. During the year, the company sold no new equity. Net income for the year was $27,000 and dividends were $5,800. 10 points eBook a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b....
Check my work 10 points Wolfson Corporation has decided to purchase a new machine that costs...
Check my work 10 points Wolfson Corporation has decided to purchase a new machine that costs $3.8 million The machine will be depreciated on a straight-line basis and will be worthless after four years. The corporate tax rate is 22 percent. The Sur Bank has offered Wolfson a four-year loan for $3.8 million. The repayment schedule is four yearly principal repayments of $950,000 and an interest charge of 6 percent on the outstanding balance of the loan at the beginning...
Check my Fill in the missing information in the following table. Assume that Portfolio AB is...
Check my Fill in the missing information in the following table. Assume that Portfolio AB is 70 percent invested in Stock A. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Annual Returns on Stocks A and B Year Stock A Stock B Portfolio AB 14.5 % 24.5% (35.9)% 2012 2013 35.6% 2014 (18.2)% 25.3% 45.9% 2015 16.7% 2016 14.4% 26.1% Average return...
You purchase 100 shares of stock for $60 a share. The stock pays a $3 per...
You purchase 100 shares of stock for $60 a share. The stock pays a $3 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is () $57; (i) $60; (ii) $66? (Leave no cells blank-be certain to enter "O" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return b, what is your real (inflation-adjusted) rate of return if the inflation rate is 4%? (Do...
Suppose you purchase 600 shares of stock at $33 per share with an initial cash investment...
Suppose you purchase 600 shares of stock at $33 per share with an initial cash investment of $9,900. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends. a. Calculate your return on investment one year later if the share price is $41. Suppose instead you had simply purchased $9,900 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter...
Suppose you purchase 700 shares of stock at $52 per share with an initial cash investment...
Suppose you purchase 700 shares of stock at $52 per share with an initial cash investment of $18,200. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends. a. Calculate your return on investment one year later if the share price is $60. Suppose instead you had simply purchased $18,200 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter...
Check my work You are considering an investment in Fields and Struthers, Inc. and want to...
Check my work You are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $62 million, had a tax rate of 30 percent, and its depreciation expense was $5 million. Fields and Struthers' gross fixed assets increased by $32 million from 2017 to 2018. The firm's current assets increased by $20 million and spontaneous current liabilities increased by...
Suppose you purchase 900 shares of stock at $74 per share with an initial cash investment...
Suppose you purchase 900 shares of stock at $74 per share with an initial cash investment of $33,300. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends. a. Calculate your return on investment one year later if the share price is $82. Suppose instead you had simply purchased $33,300 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter...
Check my work Assume you won worldwide lottery that pays $1.25 million in year 0, $5...
Check my work Assume you won worldwide lottery that pays $1.25 million in year 0, $5 million in year 1, and $200,000 in years 5 through 100. Assuming that 100 years is as "long" as infinity, calculate the perpetual equivalent annual worth for years 1 through infinity at an interest rate of 10% per year. (Enter your answer in dollars and not in millions.) The perpetual equivalent annual worth for years 1 through infinity is $[
Check my work Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $210,000. During the year, the company sold no new equity. Net income for the year was $27,000 and dividends were $5,800. 10 points eBook a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b....
Check my work 10 points Wolfson Corporation has decided to purchase a new machine that costs $3.8 million The machine will be depreciated on a straight-line basis and will be worthless after four years. The corporate tax rate is 22 percent. The Sur Bank has offered Wolfson a four-year loan for $3.8 million. The repayment schedule is four yearly principal repayments of $950,000 and an interest charge of 6 percent on the outstanding balance of the loan at the beginning...
Check my Fill in the missing information in the following table. Assume that Portfolio AB is 70 percent invested in Stock A. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Annual Returns on Stocks A and B Year Stock A Stock B Portfolio AB 14.5 % 24.5% (35.9)% 2012 2013 35.6% 2014 (18.2)% 25.3% 45.9% 2015 16.7% 2016 14.4% 26.1% Average return...
You purchase 100 shares of stock for $60 a share. The stock pays a $3 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is () $57; (i) $60; (ii) $66? (Leave no cells blank-be certain to enter "O" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return b, what is your real (inflation-adjusted) rate of return if the inflation rate is 4%? (Do...
Suppose you purchase 600 shares of stock at $33 per share with an initial cash investment of $9,900. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends. a. Calculate your return on investment one year later if the share price is $41. Suppose instead you had simply purchased $9,900 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter...
Check my work You are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $62 million, had a tax rate of 30 percent, and its depreciation expense was $5 million. Fields and Struthers' gross fixed assets increased by $32 million from 2017 to 2018. The firm's current assets increased by $20 million and spontaneous current liabilities increased by...
Check my work Assume you won worldwide lottery that pays $1.25 million in year 0, $5 million in year 1, and $200,000 in years 5 through 100. Assuming that 100 years is as "long" as infinity, calculate the perpetual equivalent annual worth for years 1 through infinity at an interest rate of 10% per year. (Enter your answer in dollars and not in millions.) The perpetual equivalent annual worth for years 1 through infinity is $[
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