In the year 2010, the average firm in the S&P 500 Index had a total market value of five times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000. What is the percent return on total market value?
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In the year 2010, the average firm in the S&P 500 Index had a total market value of five times
What is the percent return on total market value?
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- In the year 2010, the average firm in the S&P 500 Index had a total market value of five times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000. What is the percent return on equity?The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 927. If the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? Question content area bottom Part 1 The rate of return earned on the S&P 500 is enter your response here %. (Round to two decimal places.) Part 2 What is your assessment of the relative riskiness of investing in a single stock, such as Google, compared to investing in the S&P index? (Select the best choice…(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 913. If the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? CITE The rate of return earned on the S&P 500 is%. (Round to two decimal places.)
- (Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 926. If the average dividend paid on the stocks in the index is approximately 4.0 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? Question content area bottom Part 1 The rate of return earned on the S&P 500 is enter your response here%. (Round to two decimal places.)During the period 2006–2016, earnings of the S&P 500 Index companies have increased at an average rate of 6.00 percent per year and the dividends paid have increased at an average rate of 2.00 percent per year. Assume that: Dividends will continue to grow at the 2006–2016 rate. The required return on the index is 10 percent. Companies in the S&P 500 Index collectively paid $397.2 billion in dividends in 2016. Estimate the aggregate value of the S&P 500 Index component companies at the beginning of 2017 using the Gordon growth model.(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 852. If the average dividend paid on the stocks in the index is approximately 3.5 percent of the value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? ... The rate of return earned on the S&P 500 is %. (Round to two decimal places.)
- A company expects EPS to be $8.81 next year. The industry average P/E ratio is 34.84 and Enterprise multiple is 11.23. The EBITDA for the company is $20.78 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 921. If the average dividend paid on the stocks in the index is approximately 4.0 percent of the value of the index at the beginning of the year, what is the rate of retum eamed on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the returns of the index)? KIYD The rate of return earned on the S&P 500 is % (Round to two decimal places.)(Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1.410 and on December 24, 2008, the index was approximately 896. the average dividend paid on the stocks in the index is approximately 5.0 percent of the value of the index at the beginning of the year what is the rate of return eamed on the S&P index? What is your assessment of the relative riskiness of investing in a single stock such as Google compared to investing in the S&P index (recall from Chapter 2 that you can purchase mutual funds that mimic the retums of the index)? The rate of retum eamed on the S&P 500 is (Round to two decimal places) CITES
- As of the end of 2020, Microsoft had an annual net income of $51.3 Billion and total assets of $301.3 Billion. Microsoft's total book value of equity as of the end of 2020 was $118.3 Billon. Finally, Microsoft currently has 7.56 billion shares outstanding, and is priced at $243 a share. What is Microsoft's leverage, also known as its equity mulitplier (EM) (remember to use market value of equity)? 7.56 5.42 6.10 8.11A stock is currently selling for $250 per share. The next year's (t = 1) estimated earnings per share (EPS) of the company is $16. The required rate of return on the stock is 8%. The company will maintain a dividend payout ratio of 45%. Assume that the stock is fairly valued. A. What is the stock's value of assets in place? B. What percentage of the stock price is represented by its growth opportunities? C. According to the constant growth DDM, what is the implied growth rate of dividends? D.The result from Part C implies that the company's ROE is greater than its discount rate. Now suppose that the company plans to increase its dividend payout ratio. Assuming all else is equal, would you agree with the company's new payout plan? Briefly explain why. Note: You must show your calculation steps briefly and clearly.Given the following possible returns (dividends plus capital gains) over the coming year from P100,000 investment in General Motors common stock: State of Economy Profitability ReturnRecession 0.20 P-1,000 Normal year 0.60 1,500Boom 0.20 2,500What is the standard deviation of returns?