J 8 What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 10% of par, and a current market price of (a) $70, (b) $81, (c) $102, and (d) $141? Round your answers to two decimal places.
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- b. Compute Pa (price of the stock today) under Plan B. Note Dg will be equal to De x (1 + g) or $2.60 (1.05). Ke will be equal to 8 percent, and g will be equal to 5 percent. (Round your intermediate calculations and final answer to 2 decimal places.) Stock price for Plan B c. Which plan will produce the higher value? O Plan A O Plan BWhat is the CAPM required return for Stock Z, in decimal form? Round your answer to 4 decimal places (example: if your answer is .13579, you should enter .1358). Margin of error for correct responses: +/- .0005. expected return (implied by market price) Beta Stock Z 9.7% 1.43 MRP 6% ? T-bonds 5% ?What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 11% of par, and a current market price of (a) $55.00, (b) $77.00, (c) $108.00, and (d) $133.00? Round your answers to two decimal places.
- #1 O The market price of a stock is $24.51 and it just paid a dividend of $1.94. The required rate of return is 11.26%. What is the expected growth rate of the dividend? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))Stock A B 1. Consider the following market of 3 stocks: C Po $11 $54 $149 Qo 40 80 50 P₁ $17 $20 $158 Q1 40 160 50 Calculate the equal value weighted index. Please round your answer to two decimal places.Question 1 Consider the three stocks in the following table. P, represents price at time t, and Qt represents shares outstanding at time t. Po Qo P₁ Q₁ 50 100 60 100 A IB 30 200 24 200 C 20 200 30 200 a. Calculate the rate of return on a price-weighted index of the three stocks b. Calculate the rate of return on a market value-weighted index of the three stocks
- For the next question, consider the two stocks, A and B, in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. P0 Q0 P1 Q1 A 50 100 45 100 B 30 200 34 200 Calculate the rate of return on a price-weighted index of the two stocks for between t = 0 and t = 1. Assume the divisor value is 2. Enter your answer as a decimal, rounded to four decimal places (e.g, 0.0123).Consider the following information: Stock Return if Market Return Is: Stock -128 15% A 0 21 B -13 20 -21 44 D 6 6 16 -6 What is the beta of each of the stocks? (Leave no cells blank - be certain to enter "O" wherever required. Use decimals, not percents, in your calculations. A negative value should be indicated by a minus sign. Round your answers to 1 decimal place.) Stock Beta B C D E A LLIQ2 - Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7Stock X 4% -2% 5% -1% 10% 7% 12%Stock Y -3% 7% 4% 2% 2% 8% -3% Consider a portfolio of 10% stock X and 90% stock Y. What is the mean of portfolio returns? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
- eBook What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 10% of par, and a current market price of (a) $67, (b) $83, (c) $113, and (d) $132? Round your answers to two decimal places. a. b. C. d. % % % %What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 9% of par, and a current market price of (a) $31, (b) $40, (c) $52, and (d) $74 (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answers to two decimal places.The market price of a stock is $24.09 and it just paid a dividend of $1.73. The required rate of return is 11.72%. What is the expected growth rate of the dividend? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Hide Hint Similar to CSD Chapter 7 #13