Assume particular stock has an annual standard deviation

Assignment Help Financial Management
Reference no: EM131047358

Assume a particular stock has an annual standard deviation of 35 percent. What is the standard deviation for a three-month period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM131047358

Questions Cloud

The face value of mortgage note : If the face value of a mortgage note is $70million and the pv is $102 million. There are 5 years remaining on the bond. Does it make sense to sell it now for $47million or hold on to it for 5 years and sell it later?
Correlation coefficient in expected returns on stock-market : The beta of a stock is 0.50 and the standard deviation of its expected returns is 10%. The standard deviations of the market return is 15%. Find the correlation coefficient between the expected returns on the stock and the market.
Company does not offer traditional pension plan : A recent college graduate has taken a new job at Work LLC and since the company does not offer a traditional pension plan, she plans to take advantage of a tax-free investment account backed by a reputable financial institution that offers a guarante..
Sales increase-what is its self-supporting growth rate : Maggie's Muffins, Inc., generated $4,000,000 in sales during 2016, and its year-end total assets were $2,800,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
Assume particular stock has an annual standard deviation : Assume a particular stock has an annual standard deviation of 35 percent. What is the standard deviation for a three-month period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign ..
What is additional funds needed for the coming year : Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet. Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets..
University must purchase mowers for its landscape department : Zoysia University must purchase mowers for its landscape department. The university can buy EVF mower that costs $7,600 and have annual, yearend maintenance costs of $1,825 per year. The EVF mower will be replaced at the end of year 5 and have no val..
Target debt–equity ratio and cost of debt : Miller Manufacturing has a target debt–equity ratio of .40. Its cost of equity is 13 percent, and its cost of debt is 4 percent. If the tax rate is 38 percent, what is the company’s WACC?
Target capital structure of percent common stock and debt : Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 16 percent, and the cost of debt is 8 percent. The relevant tax rate is 30 percent.

Reviews

Write a Review

 

Financial Management Questions & Answers

  Calculate the net present value of the proposed change

Calculate the net present value of the proposed change, that is, the net benefit or net loss in present vaklue terms of the proposed changeover.

  What will dividend yield and capital gains yield be in year

Suppose a company has net income of $1,000,000 and a plowback ratio of 40%. there are 50,000 shares of stock outstanding. the company plans to increase dividends by 22% each year for the next 2 years and then apply a 2.25% growth rate to dividends ea..

  The warehouse is debt-free

Wexter's purchased a warehouse for $499,000 six years ago. Four years ago, repairs costing $132,000 were made to the building. The annual property taxes are $41,000. The warehouse has a current book value of $268,000 and a market value of $529,000. T..

  What is the expected return on barbara investment

Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Wha..

  Calculating operating cash flows

(Calculating operating cash flows) Assume that a new project will annually generate revenues of $2,100,000 and cash expenses (including both fixed and variable costs) of $600,000, while increasing depreciation by $180,000 per year. In addition, the f..

  Big bass sound is thriving music business

Big Bass Sound (BBS) is a thriving music business. You would like to understand the market risk of BBS and are looking to find its Beta of the Assets. BBS' Beta of Equity is 3.9, the beta of debt is 0.4, and the tax rate is 34%. BBS has 273 in debt o..

  About the premium for financial risk

Essy Enterprise has an unlevered beta of 1.3. Essy is financed with 45% debt and has a levered beta of 1.8. If the risk free rate is 6% and the market risk premium is 7%, how much is the additional premium that Essy's shareholders require to be compe..

  Company pledges to increase its dividend

Nofal Corporation will pay a $4.70 per share dividend next year. The company pledges to increase its dividend by 7.25 percent per year, indefinitely. Required: If you require a return of 10 percent on your investment, how much will you pay for the co..

  Price of the stock according to the dividend discount model

A stock is expected to pay a dividend of $3 at the end of one year. After that dividends are expected to grow at the rate of 2% per year forever. The required return on the stock is 15%. What's the price of the stock according to the dividend discoun..

  How much should the compensation be

Robbins Petroleum Company is four years in arrears on cumulative preferred stock dividends. There are 780,000 preferred shares outstanding, and the annual dividend is $4.50 per share. How much should the compensation be?   Based on market value, how ..

  What is the firms depreciation and amortization expense

The Centennial Chemical Corp. announced that, for the period ending March 31, 2014, it had earned income after taxes worth $5,330,275 on revenues of $13,144,680. The company’s costs (excluding depreciation and amortization) amounted to 61 percent of ..

  What is the value of its credit sales

Mervyn's Fine Fashions has an average collection period of 50 days. The accounts receivable balance is $95,000. What is the value of its credit sales?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd