What was the stock value when purchased

Assignment Help Financial Management
Reference no: EM131057834

Four years ago I purchased 100 shares of the XYZ Corp preferred stock. The company pays a $6.75 annual dividend and had a required return of 19%. The most recent required return for the stock is 14%.

What was the stock value when purchased ? 

What was the stock value at the end of the time frame?

What is the gain (loss)?

Reference no: EM131057834

Questions Cloud

Prepare marginal cost of capital schedule : The debt consists of 20-year, 8 percent, $1000 bonds, presently selling at $701.25. Flotation costs on new bonds would raise the effective before tax interest cost to 0.5 percent above the yield to maturity on existing debt. At least half of the net ..
Assessmentof a healthcare organization : In order for one to truly appreciate and learn the concepts of strategic management one must be positioned at the head of the table as a leader in a healthcare organization. This project is intended to afford a proximal experience of some actual e..
Question regarding the asymmetric information : Labor markets are characterized by asymmetric information because
Before-tax component cost of debt : Oberon, Inc., has a $10 million (face value) 8-year bond issue selling for 96 percent of par that pays an annual coupon of 8.00 percent. What would be Oberon’s before-tax component cost of debt?
What was the stock value when purchased : Four years ago I purchased 100 shares of the XYZ Corp preferred stock. The company pays a $6.75 annual dividend and had a required return of 19%. The most recent required return for the stock is 14%. What was the stock value when purchased? What was ..
What is the value of the company stock today : A small business has decided to seek new investors for expansion. The company has recently paid a $4.75 dividend. The average required return for the industry is 17% Dividends have historically grown at a 6% interest rate. What is the value of the co..
A rookie salesperson with associated medical supplies : (Four Points) Chapter Three You are a rookie salesperson with Associated Medical Supplies, Inc., a wholesaler of disposable medical supplies. As a new salesperson, you are finding it difficult to convince accounts to switch from their current supp..
Measure for risk-free rate : Current stock price for South Brunswick Corp. (SBRC) on March 15 is $18 and 3-months treasury rate (a measure for risk-free rate) is 1% (in terms of APR). If you purchased SBRC September 20 call option at $2, what is the price for SBRC September 20 p..
An alternative has a discounted project cost : An alternative has a discounted project cost of $4,185,000 with no salvage value. The estimate was in constant year dollars and the discounting used mid-year factors. While the period of analysis is 5 years, the alternative only provides benefits for..

Reviews

Write a Review

Financial Management Questions & Answers

  What amount should the investment grow in five years

Angie invested $150,000 she received from her grandmother today in a fund that is expected to earn 10% per annum. To what amount should the investment grow in five years if interest is compounded semi-annually?

  Receivables investment-sales outstanding

McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $715,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 50 days after their purchases. Assume 365 days in year for yo..

  Difference between ebit and taxable income

The difference between EBIT and taxable income must be the interest expense

  What is the present value of a stream of payments

The effective annual discount rate is 5% (r = .05) at all maturities. What is the present value of a stream of payments that starts at $100 at t = 1 (time in years) and grows at 3 percent for 5 years (to t = 6), then growing at 10 percent for 10 year..

  Calculate the company’s weighted average cost of capital

Calculate the Company’s Weighted Average Cost of Capital

  Considering the purchase of new parking system

A small town in Ohio is considering the purchase of a new parking system that would enhance the collection of parking fees while providing additional convenience to shoppers. The hardware requires an immediate outflow (an investment today) of $1350.

  New basel iii minimum capital requirements are excessive

Some analysts believe that the new Basel III minimum capital requirements are excessive and will reduce bank profitability, ceteris paribus. Summarize these arguments.

  According to constant growth dividend model

The Black Bear Company just paid an annual dividend of $5.98. If you expect a constant growth rate of 8% percent, and have a required rate of return of 12.65 percent, what is the current stock price according to the constant growth dividend model (Go..

  What yield rate does the investor realize

Equal principal payments are made on a loan of $1000 for 10 years. Interest is paid at the rate of 10% on the outstanding principal. The lender invests the payments (interest + principal) in a fund earning 5% interest. What yield rate does the invest..

  What is the current price of the common stock

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 40% for the next 4 years, after which competition will probably reduce the g..

  Annual rate of return on this sculpture

Assume a bronze sculpture sold in 2007 at auction for a price of $10,338,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,386,500

  Arbitrage transactions costs involving futures contract

Assume that the 3-month futures contract on SPX settled at 2070, r = 0.25%, q = 2.25%, arbitrage transactions costs (TC) involving these futures contract are 1.16 (index points). The TC band is [2060.84, 2058.52]. Therefore, the index (SPX) must have..

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