Anticipated return on the investment

Assignment Help Financial Management
Reference no: EM13868415

A stock currently costs $ 85 and pays a $ 3.50 dividend. If you expect to sell the stock after 10 years for $ 125 what is your anticipated return on the investment.

Reference no: EM13868415

Questions Cloud

Annual interest rate to advantage of cash discount offer : A supplier is offering your firm a cash discount of 2 percent if purchase is paid for within ten days; otherwise the bill is due at the end of sixty days. Would you recommend borrowing from a bank at 18 percent annual interest rate to take advantage ..
Alternative to give a better outcome at the option maturity : A speculator can choose between buying 600 shares of a stock for $40 per share and buying 1600 European call options on the stock with a strike price of $45 for $4 per option. For second alternative to give a better outcome at the option maturity, th..
Calculate the liquidity-activity-debt-profitability : Jaedan Industries has the following account balances as of December 31, 2010 (Found on pages 64-65 of the text). The firm’s dividend payout ratio is 25% and the tax rate is 34%. determine the firm’s free cash flow and calculate the liquidity, activit..
Alternative to give better outcome at the option maturity : A speculator can choose between buying 300 shares of a stock for $40 per share and buying 2350 European call options on the stock with a strike price of $45 for $4 per option. For second alternative to give a better outcome at the option maturity, th..
Anticipated return on the investment : A stock currently costs $ 85 and pays a $ 3.50 dividend. If you expect to sell the stock after 10 years for $ 125 what is your anticipated return on the investment.
The current cash flow from assets for arras : Schultz Industries is considering the purchase of Arras Manufacturing. Arras is currently a supplier for Schultz, and the acquisition would allow Schultz to better control its material supply. The current cash flow from assets for Arras is $8.0 milli..
Unemployment as the formula for monetary policy : According to the Lucas critique, why should policy makers not rely upon the Phillips curve relationship between inflation and unemployment as the formula for monetary policy?
Preferred stocks if comparable securities yield : What should be the prices of the following preferred stocks if comparable securities yield 6.5%?
Consulting business-what is the nominal annual interest rate : An engineer plans to borrow $25000 to open his own consulting business. He must repay $500 a month for 5 years. What is the nominal annual interest rate (compounded annually)?

Reviews

Write a Review

Financial Management Questions & Answers

  About direct claims is most accurate

Which of the following statements about direct claims is most accurate?

  Example of how taking compensation personally

Explain with examples the “total returns” people receive from work. Compensation for many people is an inherently personal and emotional issue. Express your opinion and give an example of how “taking compensation personally,” can play-out on the job.

  Determine the profile of the investor

Provide a rationale for the U.S. publicly traded company that you selected, indicating the significant factors driving your decision as a financial manager - Determine the profile of the investor for which this company may be a fit, relative to th..

  What is the expected return on the portfolio after purchase

Your portfolio is diversified. It has an expected return of 10.0% and a beta of .95. You want to add 500 shares of Company D's at $40 a share to your portfolio.  Company D's has an expected return of 9.0% and a beta of .75. The total value of the inv..

  Computing tax liabilityhardwaresoftware setup required

computing tax liabilityhardwaresoftware setup required financial calculatorproblem description jonathan a single male

  Profitability ratios trading on the equity digital relay

profitability ratios trading on the equity. digital relay has both preferred and common stock outstanding. the

  What are the main features of a traditional corporation

What are the main features of a traditional corporation? What are the main features of a Limited Liability Company? What are the similarities and differences we can look to when trying to determine which entity will best suit our needs in a given sit..

  What is his after-tax yield on the bonds

John Friedman is in the 40 percent personal tax bracket. He is considering investing in HCA bonds that carry a 12 percent interest rate. What is his after-tax yield (interest rate) on the bonds?

  What is the capital gains yield-dividend yield

The Summer Clothing Co. is expected to pay an annual dividend of $3.10 per share and sells for $55.47 a share based on a market required rate of return of 14 percent. What is the dividend yield? What is the capital gains yield?

  Does the infinite series of cash flow

An infinite series of cash flow pays $10 one year from today. After that the annual cash payment increases 5% per year forever. Does the infinite series of cash flow have a finite value today?

  What is the expected annual contribution to retirement plan

ELO manufacturing is looking to hire a new plant supervisor. They have 2 qualified candidates, Charlie, 43 and Kevin, 36. Both would have a starting salary of $62,000. Each could expect a 3% cost of living raise each year.

  Equal year-end deposits in a savings account

You need to accumulate $86,143 for your son's education. you have decided to place equal year-end deposits in a savings account for the next 16 years. The savings account pays 3.62 % per year compounded annually.

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