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You own a bond portfolio worth $88,330.You estimate that your portfolio has an average yield-to-maturity of 5.1% and Macaulay Duration of 3.3 years. If interest rates went down one percentage point and your portfolio's yield-to-maturity changed by the same amount, what would be the new value of your bond portfolio?
(Hint: Covered in Chapter 7 slide 45.
Step? 1: Find the portfolio's Modified Duration (ModD) given its MacD and yield-to-maturity.
Step? 2: Compute the change in the portfolio's value using the equation on slide 45.
Step? 3: Compute the new value given original value and the change in value from Step 2).
Your portfolio is 150 shares of Davis, Inc. The stock currently sells for $76 per share. The company has announced a dividend of $1.45 per share with an ex-dividend date of April 19. Assuming no taxes, how much will your stock be worth on April 19?
Identify financial statement by type of information.- Identify the financial statement where these decision makers can find the following information about Hi Tech.
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Story brook, Inc. is currently selling for $25.50, with trailing EPS and dividends of $2.25 and $1.31, respectively. The company’s P/E is 11.3, P/B is 7.1, and P/S is 4.3. The ROE is 21 percent, and the profit margin on sales is 8.25 percent. The Tre..
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