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On October 1, 1970, Walmart first offered 300,000 shares of its common stock to the public at a price of $16.50 per share. Since that time, Walmart has had 11 two-for-one stock splits. So if you pur chased 100 shares in 1970, you would have 204,800 shares as of September 30, 2014. The closing price of the stock on that day was $77.50. What is the com pound growth of the Walmart stock over 44 years?
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- Warren Buffett’s Berkshire Hathaway Com-pany went public in 1965. The public offering price was $18 per share. The stock was trading at $190,500on July 1, 2014, and the market value of the firm was$304.8 billion.(a) What is the firm’s average annual compoundgrowth rate over last 49 years?(b) If Mr. Buffett’s company continues to grow at the historical growth rate, what will be his com-pany’s total market value when he reaches the age of 100? (Buffett celebrated his 83th birthdayin 2014.)The Hold Up Bank has issued 40,000,000 shares of preferred stock. Each share pays a $2.00 quarterly dividend in perpetuity. If the next dividend is to be paid later today, and one preferred share currently costs $135.33, what is the cost of preferred equity? Calculate as an EAR, not an APR. Enter your answer as a percent rounded to two decimals. Hint. The stock price is simply the present value of the expected future cash flows. Here the cash flows (dividends) happen to be a constant perpetuity with the first payment taking place today. 5.92One year ago, KJ Industries stock sold for $58 a share. Over the past year, the stock has returned 19.0 percent with half of that return coming from dividend income. What is the current price of this stock? $69.02 $63.51 $52.49 $46.98
- Sandhill’s Copper Corp. management expects its common stock dividends to grow 1.74 percent per year for the indefinite future. The firm’s shares are currently selling for $21.60, and the firm just paid a dividend of $3.00 yesterday. What is the cost of common stock for Sandhill? (Round answer to 2 decimal places, e.g. 15.25%.) Cost of common stock Type your answer here %In 1970, Wal-Mart offered 300,000 shares of itscommon stock to the public at a price of $16.50 pershare. Since that time, Wal-Mart has had 11 twofor-one stock splits. On a purchase of 100 shares at$16.50 per share on the company’s first offering,the number of shares has grown to 204,800 sharesworth $15,767,500 in July 2014. What is the returnon investment for investors who purchased the stockin 1970 (over a 44-year ownership period)? Assumethat no dividends were received during that periodYesterday, at the market close, the stock of Kevin Spellman, Inc. was trading at $200 per share, and there were 800,000 shares outstanding. This morning, Kevin Spellman, Inc. announced it was doing a 4:1 stock split before the market opened. Under the efficient market hypothesis and with no new information, what will be the new stock price in dollars per share?
- Ivanhoe's Copper Corp. management expects its common stock dividends to grow 1.56 percent per year for the indefinite future. The firm's shares are currently selling for $19.35, and the firm just paid a dividend of $3.00 yesterday. What is the cost of common stock for Ivanhoe? (Round answer to 2 decimal places, e.g. 15.25%.) Cost of common stockYesterday at the market close, the stock of Kevin Spellman, Inc. was trading at $100 per share and there were 500,000 shares outstanding. This morning before the market opened, Kevin Spellman, Inc. announced that it was doing a 5:1 stock split. Under the efficient market hypothesis and with no new information, what will be the new stock price in dollars per share?In the period immediately following the initial public offering (IPO), OHaganBooks.com's stock was increasing by 1.8% every hour. Based on this information, create an exponential model, where t is time is hours since it was first offered to answer the following : If you bought $12,000 worth of stock when it was first offered, how much was your stock worth after 8 hours. (Round to the nearest cent which is two decimal places.) (Hint: this is not a continuous exponential model.)
- In the third quarter of 2021, from July 1 through September 30, Hess Corp (HES) stock decreased from $88 to $78 per share, and Exxon Mobil (XOM) stock decreased from 564 to 560 per share. † If you invested a total of $19, 920 in these stocks at the beginning of July and sold them for $18, 180 3 months later, how many shares of each stock did you buy?On August 19, 2004, Google completed its IPO of 18.5 million shares to the initial investors at $80 per share. The closing price of the stock that same day was $100.00. What was the dollar value of the underpricing associated with the Google IPO? (Round answer to 0 decimal places, e.g. 5,275.)Dee's made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be $1.87 a share. Secondly, all dividends after that will decrease by 1.91 percent annually. What is the value of this stock at a discount rate of 10.0 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)