Your company is considering an issue of preference shares. The market is currently expecting a return of 7 percent and your company expects earnings per share to be $10.10 and the dividend for preference shares to be $1.40. i) What will be the issue price of a preference share? $20
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Your company is considering an issue of preference shares. The market is currently expecting a return of 7 percent and your company expects earnings per share to be $10.10 and the dividend for preference
shares to be $1.40. i) What will be the issue price of a
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- 3. What is the intrinsic value of a share of stock if expected dividends are $8/share and the expected price year is $90/share? Assume a discount rate of 10%. What is the expected return and what should be the decision from an investor?. in 1Suppose you bought XYZ stock 1 year ago for $6.54 per share and sell it at $2.79. You also pay a commission of $0.35 per share on your sale. What is the total return on your investment? The total return is %?Suppose you are thinking of purchasing the SunStar’s common stock today. If you expect SunStar to pay $0.80 dividend at the end of year one and $1.6 dividend at the end of year two and you believe that you can sell the stock for $15 at that time. If you required return on this investment is 10%, how much will you be willing to pay for the stock? a. $13.95 b. $14.44 c. 14.19 d. $15.51
- You are considering whether to purchase a company's stock. The stock is expected to pay two dividends, $1.50 at the end of year 1 and $1.75 at the end of year 2. The expected selling price of the stock is $17.50 at the end of year 2. If you require a rate of return of 16% per year for the investment, what is the maximum price that you are willing to pay per share? Select one: a. $14.61 b. $15.49 C. $14.51 d. $15.60 e. $14.17You have the following share price of XYZ. DATE Price 2-Mar-2021 $100 3-Mar-2021 $60 4-Mar-2021 $40 5-Mar-2021 $100 Investor A bought 100 shares of XYZ on 2-Mar-2021 and sold all the shares on 5-Mar-2021. Which answer is the closest value to the geometric average rate of return for the investor? A. 15% B. 20% C. 25% D. 0%You are considering the purchase of preferred stock that is currently selling for $57.25 and promises an annual dividend of $4.50 dividends. What is the implied return on this investment? O 7.86% O 12.72% O 8.30% O 9.61% 11.35%
- Suppose you have just purchased a share of stock for $58.50. You expect a dividend next period of $2.50 which will grow at a rate of 15% indefinitely. What must your expected rate of return be on the stock you have just purchased? Select one: A. 4.27% B. 15.38% C. 19.27% D. 19.91% E. None of the aboveThe preference share of Acme International is selling currently at $107.4. If your required rate of return is 8.7 per cent, what is the dividend paid by this share?Answer the multiple-choice question below: 1.If you buy a stock for a price of $23 and if you expect the stock to pay a dividend of $1.242 one year from now and to grow at a constant rate g = 8% in the future, then the required rate of return will be __________. Select one: a.12.4% b.20.4% c.13.4% d.14.5%
- Suppose you invest in 150 shares of Harley-Davidson (HOG) at $40 per share and 250 shares of Yahoo (YHOO) at $25 per share. If the price of Harley-Davidson increases to $50 and the price of Yahoo decreases to $20 per share, what is the return on your portfolio? OA. 2.04% OB. - 10.50% O C. -5.20% OD. 12.25% CAssuming you have a margin account with a leverage ratio of 1.76and you wish to sell short a stock currently priced at $25 per share, how many shares can you sell short if you intend to use $9200 of your own equity to initiate the short sale? suppose the maintenance margin is 0.28 Calculate the number of shares what is the margin call priceWhat 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