enter exact answers pleaseyou may use excel Question 11ABC Corporation, with a current market value of*60, gave a dividend of 12 per share for itscommon stock. CDE Corporation, with a marketvalue of $120, gave a dividend of 20 per share forits common stock. EFG Corporation, with a currentmarket value of $80, gave a dividend of 15 pershare. Assuming all other things remain constant, inwhich corporation should you invest?A EFGB CDEC) ABC

Stock/Dividend yield ratio : Dividend yield ratio measures the return on investment in stocks and…

Answered: ABC Corporation, with a current market…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What rate of return should you expect to earn on an investment in the stock described below if you bought it at its current market price? Stock A Earnings: $3.00 per share Dividend: $1.50 per share Expected growth rate: 5% Current market price: $60 per share 5.0% O 10.0% O 2.5% O7.5% Ruestion 11 How did you solve the problem above? Show your work. P Type here to search mi 75
Y6 Consider a stock priced at $40 that pays an annual dividend of $ 1 per share. An investor purchases the stock on margin, paying $20 per share and borrowing the remainder from the brokerage firm at 10 percent annual interest. a. If, after one year, the stock is sold at a price of $60 per share, what is the return on the stock? b. If investors had used only personal funds rather than borrowing funds, what would have been the stock return?
Question 21 As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D 0 = $0.80; P 0 = $22.50; and g L = 8.00% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings? a. 11.25% b. 10.69% c. 11.84% d. 12.43% e. 13.05% Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,000 Total CA $294,000 Long-term debt 70,000 Net fixed assets 126,000 Common equity 280,000 Total assets $420,000 Total liab. and equity $420,000 Sales $280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70,…
a. All future prices and future dividends are expected values OTrue OFalse b. Shareholders elect: Cofficers OManagers ODirectors Oinvestors c. If Do= $2and dividends are expected to grow at a rate g = 5% then D7 !! O$2.68 OS2.1 O$1.39 O$2.81 d. The market price of a share is always equal to the estimated price of a share. OTrue OFalse e. A share with voting rights is more valuable than a share without voting rights OTrue OFalse Give your reasons
10. Consider the following price and dividend data for Quicksilver Inc.: Year Price (£) Dividend (£) 0 10 1 0.14 2 0.14 3 14 0.14 Assume that you purchased Quicksilver's share in year 0 and sold it at the end of year 3. Your annual rate of return for holding this share is closest to ________. A. 8% B. 14% C. 20% D. 19%
Question 6: Firm XYZ has never missed a dividend payment in its 50-year history. Does this make it more attractive to you as a possible purchase for your stock portfolio? Explain. 2
$44 a share, what is the company's cost of equity? 2. Calculating Cost of Equity Hoolahan Corporation's common stock nas a beta of .87. If the risk-free rate is 3.6 percent and the expected return on the market is 11 percent, what is the company's cost of equity capital? 01
Entity X distributed a dividend of $ 12.5 per share last year. If the business is expected to distribute the same amount of dividends in the following years and the minimum return rate expected by the investors is 15%, what is the real value of the stocks of the X entity?a) 48,33b) 36,33c) 83,33d) 25,33e) 64,33
[EXCEL] Preferred stock valuation: The preferred stock of Axim Corp. is currently selling at $47.13. If the required rate of return is 12.2 percent, what is the dividend paid by this stock? Please use Excel.
Answer the multiple-choice question below: 1. WICB’s stock’s intrinsic value is $48.40, the required rate of return is 12.5 percent and the dividend growth rate is 10 percent, what is WICB’s recent dividend? Select one: a. $1.21 b. $4.80 c. $1.25 d. $0.20 e. $1.10
ADC 1) Based on End-of-Chapter Problem 6 in Chapter 5 The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end- of-year price depend on the state of the economy by the end of the year as follows: Stock Price Dividend. $2.00 $50 1.00 43 0.50 34 a. Calculate the expected holding-period return and standard deviation of the holding- period return. All three scenarios are equally likely. Boom Normal economy Recession b. Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 4%.
What is the current price of a share of stock when the current dividend is P4.75, the growth rate is 7%, and the investor's required rate of return is 11%? A. P118.75 B. P 43.16 C. P 46.20 D. P127.06

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