KTime left 0:59:42estion 1wweredarked out ofwquestionMr. Johnson owns $300 shares of NYCO's preferred stock which currently sells for $30.00 pershare and pays annual dividends of $2.00 per share. What is the required return?Select one:O a. 15.0 percentO b. 6.67 percentO c. 15.2 percentOd. 10.0 percentO e. 6.78 percentQuestion 2Not yetaquaradWICB's stock's intrinsic value is $48.40, the required rate of return is 12.5 percent and thedividend growth rate is 10 percent, what is WICB's recent dividend?

1. Compute required return: Required return = Annual dividend * 100 / Current price of stock…

Answered: K Time left 0:59:42 estion 1 wwered…

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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An investor short sells 100 shares of a stock for 69.07 per share. The initial margin is 50%, and the maintenance margin is 39%. The price of the stock rises to $81.51 per share. What is the margin, and will there be a margin call? Question content area bottom Part 1 The margin in the account is ............%. (Round to the nearest percent.)
You 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 B 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 arithmetic average rate of return for the investor? A. 20% B. 15% C. 25% D. 0%
You purchased a share of stock for Rs 250. One year later you received Rs 5 as dividend and sold the share for Rs 320. Holding period return would be a. 12 percent b. 21 percent c. 30 percent d. 54 percent
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ou purchased 850 shares of Sea Inc. common stock one year ago for $47 per share. You received a dividend of $1.35 per share today and decide to take your profits by selling at $52.50 per share. What is your Olding period rate of return? A. 12.72% B. 14.57% OC. 11.70% O D.8.58% O E. None of the above.
ou purchase 100 shares of stock for $50 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $48; (ii) $50; (iii) $54? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) Rate of Return 48 50 54 b. What is your real (inflation-adjusted) rate of return if the inflation rate is 3%? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.) Real rate of Return 48 50 54
An investor purchased 50 shares of stock in a company for $50 per share. One year later, the investor sold all the shares for $2,600. What is the investor's rate of return? A. 4.0% В. -4.0% С. 3.8% D. -3.8%
Assume you purchased 500 shares of XYZ common stock on margin at $29 per share from your broker. A. Find the following (note: fill in the blanks with values rounded to the nearest cent, no dollar signs "$", and commas "". Example: $1,234.567 >>> write as 1234.57) If the initial margin is 57%, the amount you borrowed from the broker is $ and your equity is $ B. What is the new margin if the price of share falls to $31? (note: fill in the blank with rounded % as follows: example 34.567% >>> write as 34.57%)
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