Estimate the average annual return you would have made on

Assignment Help Finance Basics
Reference no: EM13484030

Unicom is a regulated utility serving Northern Illinois. The following table lists the stock prices and dividends on Unicom from 1989 to 1998.

Year

Price

Dividends

1989

$36.10

$3.00

1990

$33.60

$3.00

1991

$37.80

$3.00

1992

$30.90

$2.30

1993

$26.80

$1.60

1994

$24.80

$1.60

1995

$31.60

$1.60

1996

$28.50

$1.60

1997

$24.25

$1.60

1998

$35.60

$1.60

a. Estimate the average annual return you would have made on your investment.

b. Estimate the standard deviation and variance in the annual returns.

c. If you were investing in Unicom today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?

Reference no: EM13484030

Questions Cloud

The company just announced that future dividends will be : solar energy inc. will pay an annual dividend of 1.85 next year. the company just announced that future dividends will
What are some examples of restrictive covenants that might : what are some examples of restrictive covenants that might be specified in a bonds
What is the financial leverage effect and what causes it : what is the financial leverage effect and what causes it? what are the potential benefits and negative consequences of
What is the operating leverage effect and what causes it : what is the operating leverage effect and what causes it? what are the potential benefits and negative consequences of
Estimate the average annual return you would have made on : unicom is a regulated utility serving northern illinois. the following table lists the stock prices and dividends on
Tomar company produces vitamin energy drinksnbspnbspthe : tomar company produces vitamin energy drinks.nbspnbspthe mixing department the first process department mixes the
Explain the difference between the discounted free cash : explain the difference between the discounted free cash flow model as it is applied to the valuation of common equity
Aswer the following multiple-choice question total : a company has only common stock outstanding.required answer the following multiple-choice question. total stockholders
Define the pe valuation method under what circumstances : define the pe valuation method. under what circumstances should a stock be valued using this

Reviews

Write a Review

Finance Basics Questions & Answers

  Prevailing prices-changing in same direction

Does it appear that futures prices among currencies (for the closest settlement date) are changing in the same direction? Explain.

  Retirement annuity problem

Suppose that she can obtain a 9% average return on her deposits and on her funds accumulated on her retirement plan.

  Cost of capital assume a firm uses its company cost of

cost of capital suppose a firm uses its company cost of capital to evaluate all projects. will it underestimate or

  What would make for a larger increase in the stock variance

What would make for a larger increase in the stock's variance: an increase of .15 in its beta or an increase of 3% in its residual standard deviation?

  What is the payback period for each of these projects

Construct a timeline to answer the following. 1. What is the payback period for each of these projects?

  Find the default risk premium on the corporate bond

A Treasury bond that matures in 10 years has a yield of 4.5%. A 10-year corporate bond has a yield of 7.5%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on the corporate bond? Round your answer ..

  Brussels chocolates of belgium uses standard costs and a

brussels chocolates of belgium uses standard costs and a flexible budget to control its manufacture of its chocolates.

  A 20 year old student wants to save 3 a day for her

a 20 year old student wants to save 3 a day for her retirement. everyday she places 3 in a drawer. at the end of each

  What is the liquidity premium on niendorf bonds

The maturity risk premium for all bonds is found with the formula MRP = (t - 1) x 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds?

  Find the value of fra where holder receives interest at

the zero rate curve is flat at 6 pa with semi-annual compounding. what is the value of a fra where the holder receives

  Should the company accept the project

The Mitre Box Company is considering a project with an initial cost of $35,000 and future cash inflows of $20,000, $15,000, $10,000 and $5,000 over the next four years respectively.

  Find expected dividend payout ratio

Calculation of Dividend Payout ratio - If the firm follows a residual dividend policy and has no other projects, what is its expected dividend payout ratio?

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