Business

FinanceQ&A LibraryI am currently working on some financial problems and accidentally asked more questions than permitted on my first submission. Here I have attached two other questions I need help setting up and solving for 3) what is the expected return of the three stock portfolios described below? common stock market value expected return ando inc 95000 12.% bee co. 32,000 8.75% cool inc. 65000 17.7% 4) the expected return for a stock, calculated using the CAPM is 10.5%. The market free return is 9.5% and the beta of the stock is 1.50. calculate the implied risk-free rateStart your trial now! First week only $4.99!*arrow_forward*

Question

I am currently working on some financial problems and accidentally asked more questions than permitted on my first submission. Here I have attached two other questions I need help setting up and solving for

3) what is the expected return of the three stock portfolios described below?

common stock | market value | expected return |

ando inc | 95000 | 12.% |

bee co. | 32,000 | 8.75% |

cool inc. | 65000 | 17.7% |

4) the expected return for a stock, calculated using the CAPM is 10.5%. The market free return is 9.5% and the beta of the stock is 1.50. calculate the implied risk-free rate

Tagged in

Business

Finance

Find answers to questions asked by students like you.

Q: 1H 3. Express the percent as a decimal. Coo 16.as%o 480% = LRo9u180 4.8 /00 4. As part of a fundrais...

A: Your answer to Q - 3 is correct. Hence, I am straightway moving to Q - 4.

Q: find the interest earned principle 8000 rate .06 compounded annually years 3

A: The formula to calculate accumulated value is given below:

Q: ERC is the largest logging company in the United States. Their logging reserves are being depleted ...

A: The amount received by shareholders on periodic basis against providing equity to company is known a...

Q: Imprudential, Inc., has an unfunded pension liability of $582 million that must be paid in 20 years....

A: To find out the value of the pension liability, the amount will be simply discounted to its present ...

Q: Prepare an amortization schedule for a five-year loan of $59,000. The interest rate is 7 percent per...

A: Amortization schedule is prepared as follows, formulas for each cell is given in the next screen sho...

Q: You are a management trainee in one of the Manufacturing companies based in Johor, Malaysia. The com...

A: It is extremely hard to measure financial cost and other direct and indirect costs; consequently dis...

Q: What is the value today of an annuity of $5,900 per year, with the first cash flow received three ye...

A: According to the information provided, the first cash flow is three years from today and the last on...

Q: Amortization schedule Set up an amortization schedule for a $25,000 loan to be repaid in equal inst...

A: The table that shows the complete payments until the loan amount is totally paid off is known as amo...

Q: Calculate the value of x for the cash flows below such that the equivalent total value in year 8 is ...

A: Equivalent value of a cash flow, Ct occurring at time t, at the end of year n = Ct x (1 + r)n - t wh...

Q: The XYZ Company paid $1.25 dividend yesterday. Its dividend growth rate is expected to be constant a...

A: Current price of stock will consist present value of all future dividend.The below expression will h...

Q: What is Ratio Analysis? Briefly explain

A: Ratio Analysis: It is the procedure of analyzing and looking at money related data by determining im...

Q: A preferred stock has a par value of $110 and pays an annual dividend of 5% of par. If similar inves...

A: Computation of current preferred stock value:Hence, the current preferred stock value is $183.33.

Q: You would like to have $59,000 in 5 years for the down payment on a new house following graduation b...

A: Future Value= $59,000; No. of periods= 5*4= 20 years, Interest rate per period = 4.24/4= 1.0625.Sinc...

Q: Executives at Microsoft are interested to get into the drone delivery business.They decide to acquir...

A: Option 1: The present value is $40 million.Option 2: Calculate the present value as follows:

Q: The coupon rate and the face value of the bond is contained in the Group of answer choices bond i...

A: Bond indenture is the legal agreement between bond issuer and bond holder which consists of all term...

Q: The Lake Placid Town Council has decided to build a new community center to be used for conventions ...

A: a)Expected value approach: Excel computation: (In thousand dollars)The medium or large can be select...

Q: The calculation of a hurdle rate when looking capital expenditures involves looking at what financia...

A: Generally companies take up new projects only when the project passes the hurdle rate (HR). As the n...

Q: Given the indicated maturities listed in the following table, assume the following yields for U.S. T...

A: Shown below is the yield curve for the given interest rates:

Q: A project requires an initial investment of $40 million. It generates cash flows of $25 million in o...

A: Calculation of Profitability Index:The profitability index is 1.16.Excel Spreadsheet:

Q: What mortgage would result in a higher payment? Mortgage A $985 a month for 30 years or Mortgage B ...

A: Click to see the answer

Q: Campbell Supper Co. paid a $0.672 dividend per share in 2013, which grew to $0.82 in 2016. This grow...

A: Dividend per Share in 2013 (pv) = $0.672Dividend per Share in 2016 (fv) = $0.82Time Period (nper) = ...

Q: When an investment banker purchases an offering froma bond issuer and then resells it to the public ...

A: Answer: Option C. Firm commitmentFirm commitment is also known as a bought deal. In this, the inves...

Q: What is the future value of $875 deposited for one year earning an 8 percent interest rate annually?

A: Future value can be described as the future worth of a specific amount at a certain future date.It i...

Q: Atlantic Corporation is the largest logging company in the north eastern part of the United States. ...

A: a) According to the information provided, dividends are declining at a rate of 5% per year. Dividend...

Q: What are the TRIN Statistics and Cofidence Index and what do their values describe about the bullish...

A: The Trading Index is also known as Arms index. The name Arm’s index is decided on the name of the de...

Q: What are the key points to consider when describing a firm's payout?

A: Meaning of dividend pay-out:The pay-out ratio shows the share of earnings paid out to shareholders a...

Q: I have 2 questions that I need help with. 1.Problem 8-15 Value of Dividends and Future Price (LG8-...

A: 1. Computation of value of stock:The value of the stock is $79.43. Excel spread sheet:

Q: In a strong-form efficient market, accounting announcements: will impact stock price only if it ...

A: Stock price can be defined as the monetary value of a stock at which the stock is traded in the mark...

Q: Alternatives 1,2, and 3 have lives of 3,4, and 6 years, respectively. Their net cash flow (NCF) and ...

A: Alternatives 1, 2& 3 have lives 3, 4 & 6 years respectively.Part (a)LCM (3, 4, 6) = 12Repeat...

Q: For Hero Honda company, country's largest two-wheeler maker Hero MotoCorp announced a joint venture ...

A: As per the capital budgeting criteria, investment is made in any project if the net present value of...

Q: Gillette's most recent annual dividend was $8 per share. The company expects the growth of its divid...

A: Part A& B:Calculation of Current Value of Stock and Dividend Growth Rate:Excel Spreadsheet:

Q: Questions are on image

A: (1)Computation of closing stock and cost of goods sold is as follows:Calculation:Therefore, the valu...

Q: Skolits Corp. issued 15-year bonds 2 years ago at a coupon rate of 7.6 percent. The bonds make semia...

A: Calculate the yield to maturity (YTM) as follows:MS - Excel --> Formulas --> Financials -->...

Q: A mining company in South Africa has discovered a new gold vein in a mountain 150 kilometers north o...

A: 1) To set up a new a mine in a mountain which is 150 kms north of Johannesburg, the company would sp...

Q: What is Internal Rate of Return - All Cash Deal? Please provide examples

A: Internal Rate of Return (IRR)IRR is the annualized effective compounded rate or return that can be e...

Q: Last year, Hassan’s Madhatter, Inc. had an ROA of 5.8 percent, a profit margin of 18.50 percent, and...

A: Basic FrameworkROA = Net income / Total assets = Sales x Profit Margin / Total AssetsHence, Total as...

Q: Schalheim Sisters Inc. has always paid out all of its earnings as dividends; hence, the firm has no ...

A: The right answer is option (d). Under the CAPM method, the cost of capital is calculated by, first ...

Q: Parents wish to have $110,000available for a child's education. If the child is now 99 years old, ...

A: If P is the amount set aside today, then it's future after year n, in an account offereting annual i...

Q: A risky bond has a $1,000 face value, a 3-year maturity, and a coupon rate of 6%. The probability t...

A: Approach:We will calculate the rate of return in case there is no default. This will be calculated u...

Q: Finance Question

A: Future value of a stream of annuity is given by the expression shown on the white board. Symbols hav...

Q: Suppose you have two options for buying total 500 stocks. A: You can buy 1 stock from each of...

A: Diversification can be described as a way of investing in such a manner that reduces overall risk fo...

Q: You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25%...

A: The number of months to stay will be around 6 months.

Q: You deposit $3000 in an account that pays 88% interest compounded semiannually. After 33 years, th...

A: Amount deposited, P = $ 3,000Future value of P deposited in an account offering annual interest rate...

Q: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained earnings...

A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining ea...

Q: Topic: Capital Budgeting and Valuation with Leverage Is it possible to calculate the unlevered value...

A: APV: It is abbreviated as Adjusted Present Value, is a study which is like the discounted cash flows...

Q: A 2-year Treasury security currently earns 1.77 percent. Over the next two years, the real risk-free...

A: Calculate the maturity risk premium as follows:

Q: What is calculation of before Tax (Equity) Cash Flow? Please provide example.

A: The cash flow, which is generated by an investment after deducting all payments of all expenses from...

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please typ...

A: As requested, I have typed the calculations for your convenience.The company sold 4 million of prim...

Q: Wildcat engineering decides to take a $10,000 interest only lona. The loan is to be paid montly over...

A: Interest only loan can be described as the loan on which borrower only pays the interest payments du...

Q: A manager has determined that a potential new product can be sold at a price of $50 each. The cost t...

A: Selling Price = $50Variable Cost (Production Cost of Product) = $35Fixed Cost (Lease of necessary eq...