Equity investment of this level of risk

Assignment Help Financial Management
Reference no: EM131333764

Harris Enterprises, Inc. offers $90 par-value preferred stock that pays a 15% annual dividend. How much are you willing to pay for one share of this stock if you want to earn 15 percent on an equity investment of this level of risk?

Reference no: EM131333764

Questions Cloud

Distinguish between zero-match and partial-match recovery st : Give your suggestion on: By using an extra table that stored space positions it would be possible to significantly improve the efficiency of the expansions loop.
Analysis of the type of treatment for juveniles : Even when they are placed in juvenile institutions, they are often in "lock down" conditions and solitary confinement. Juvenile advocates reject this type of treatment. What is your analysis of the type of treatment for juveniles
Effect of exercise on cells : In the video on the effect of exere on cells, it was pointed out that people who exercised regularly had younger cells. The researchers looked for a marker in volunteer's blood. They found "strands" and surmised that, "the longer these strands, th..
Partial ordering over the set of stable matchings : Prove that when the partial ordering over the set of stable matchings is , the minimum of the stable matchings A and B is A ∨m B.
Equity investment of this level of risk : Harris Enterprises, Inc. offers $90 par-value preferred stock that pays a 15% annual dividend. How much are you willing to pay for one share of this stock if you want to earn 15 percent on an equity investment of this level of risk?
Use free cash flow to evaluate business performance : Eight years ago you bought a $1,000 par bond with a 5% semi-annual coupon and 15 years to maturity. If the yield to maturity is currently 3.8%, what is the current price of the bond? The return on US T-Bills is 6%, inflation is 3% and the risk premiu..
What are some of the symptoms of bipolar i disorder : Select 1 of the following Bipolar and related disorders:Bipolar I Disorder,Bipolar II Disorder,Cyclothymic Disorder,Provide the following details about the disorder:What are some of the symptoms?
What tax sources would you use to research the problem : What would be your plan of action? What tax sources would you use to research the problem? How would you communicate your findings to the client?
What biological characteristics : The Earth's largest phylum is Arthropoda, including centipedes, millipedes, crustaceans, and insects. The insects have shown to be a particularly successful class within the phylum. What biological characteristics have contributed to the success o..

Reviews

Write a Review

Financial Management Questions & Answers

  Receiving perpetuity from the account

You are going to pay $800 into an account at the beginning of each of 20 years. The account will then be left to compound for an additional 20 years. At the end of the 41st year you will begin receiving perpetuity from the account. If the account pay..

  What will the price per share be after the share repurchase

Gary's Boutique has 4,000 shares of stock outstanding at a price per share of $19. The firm has decided to repurchase 500 of those shares in the open market. What will the price per share be after the share repurchase is completed? Ignore taxes and m..

  Spot exchange rates-what happened to the real value of peso

The Mexican peso/US$ spot exchange rates in December 1997 and December 1998 were 6.3 and 7.0, respectively. During 1998 inflation rates in Mexico and US were at 23% and 5%, respectively, and the one year interest rates in December 1998 in pesos and d..

  Life insurance policy with a short premium paying period

A limited-pay whole life insurance policy with a short premium paying period (e.g., 10 years) runs the risk of becoming a “MEC” (Modified Endowment Contract) if:

  Weight of debt-calculating the cost of capital

Bennington Industrial Machines issued 153,000 zero coupon bonds six years ago. The bonds originally had 30 years to maturity with a yield to maturity of 7.3 percent. Interest rates have recently increased, and the bonds now have a yield to maturity o..

  Modified duration and the capital gains formula method

A bond with 3 years remaining to maturity has an annual coupon rate of 8.5%, and a face value of $1,000. If interest rates fall 0.15% from the given YTM, by what percent will the bond change in value? Show these 2 ways (using modified duration and th..

  Assuming the company continues its current growth rate

Stock Valuation at Ragan, Inc. Ragan, Inc., was founded nine years ago by brother and sister Carrington and Genevieve Ragan. The company manufactures and installs commercial heating, ventilation, and cooling (HVAC) units. Assuming the company continu..

  Calculate operating cash flow for the year

The owner of a bicycle repair shop forecasts revenues of $240,000 a year. Variable costs will be $70,000, and rental costs for the shop are $50,000 a year. Depreciation on the repair tools will be $30,000. The tax rate is 30%. Calculate operating cas..

  Debating between leveraged and unleveraged capital structure

Juno Industrial Products is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 20,000 shares of stock. The debt and equity option would consist of 14,000 shares of stock plus $170,000 ..

  The end-of-year balance for net operating working capital

The 2015 income statement for Duffy’s Pest Control shows that depreciation expense was $201 million, EBIT was $512 million, and the tax rate was 30 percent. Calculate the end-of-year balance for net operating working capital.

  What is the effective annual cost of trade credit

Pets Store Inc. sells on terms of 2/15, net 70. What is the effective annual cost of trade credit under these terms? Use a 365-day year. A retailer with high inventory turnover is likely to have

  What is required rate of return-constant growth valuation

Constant growth valuation Harrison Clothiers' stock currently sells for $31 a share. It just paid a dividend of $2.5 a share (that is, D0 = 2.5). The dividend is expected to grow at a constant rate of 5% a year. What stock price is expected 1 year fr..

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