If an individual common stock has beta

Assignment Help Financial Management
Reference no: EM131185185

If an individual common stock has a beta of 1.3, this indicates the common stock.

a. will fluctuate in a more exaggerated manner compared to the broad market trend

b. will tend to move in a less exaggerated manner compared to the broad market

c. has a dividend yield that is less than the long-term market average

d. is a secondary issue of stock

Reference no: EM131185185

Questions Cloud

The interest income is distributed : George Jefferson established a trust fund that provides $179,500 in scholarships each year for worthy students. The trust fund earns a 4 percent rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest i..
Determine the most efficient financing solution : The Pasta corporation a Brooklyn based manufacture of homemade pasta needs $1,000,000 and can raise this through debt at an annual rate of 10 percent, or preferred stock at an annual cost of 7 percent. The corporation has a 40 percent tax rate. You a..
Direct financing and sales-type lease-lessee and lessor : Direct financing and sales-type lease; lessee and lessor [LO15-3, 15-5, 15-6] Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. How should this lease be classified by Mid-South Urolog..
The after- tax profit margin is forecasted : Winter snowboard inc. sales are expected to increase 10% in 2014 from$15 million in 2013. Its assets at the end of 2013 were $5 million. The company is at full capacity, so its assets muct grow at the same rate as projected sales. The after- tax prof..
If an individual common stock has beta : If an individual common stock has a beta of 1.3, this indicates the common stock.
Use the black-scholes formula to value the options : Use the Black-Scholes formula to value the following options:
Stock ownership can be replicated by : Stock ownership can be replicated by:
For stock that pays dividends : For a stock that pays dividends:European call option values cannot be calculated under any circumstances. American call options are likely less valuable than European call options. American call options are likely more valuable than European call opt..
Discuss the implications for marketers : Do you know Danica from the Philippines, Peter from London, Nargis from India, Marina from Russia, Chieko from Japan, or Miran from the United States? These are some of the babies whose parents claimed they were the 7th billion human born into the wo..

Reviews

Write a Review

Financial Management Questions & Answers

  Common shareholder get in aggregate post-liquidation

Suppose that a recently-healthy firm has just defaulted, has been liquidated, and where the firm's assets were worth $100 million before the liquidation. How much money would common shareholder get in aggregate post-liquidation?

  Compute the price of the bonds for the maturity dates

Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 15 percent annual interest. The current yield to maturity on such bonds in the market is 17 percent. Use Appendix B and Appendix D for an approximate answer but calculate your fi..

  What is the relationship between eva and mva

What is the relationship between EVA and MVA? What impact do you think this performance by the bank is having on the value of its debt and equity securities?

  What is the stock current price per share

Tapley Inc. currently has total capital equal to $6 million, has zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $2 million, and pays out 40% of its earnings as dividends. What is the stock's current price per share (befo..

  What is the value of stackers stock

Stacker Weight Loss currently pays an annual year-end dividend of $1.20 per share. It plans to increase this dividend by 5% next year and maintain it at the new level for the foreseeable future. If the required return on this firm's stock is 8%, what..

  What is the size of the monthly withdrawals

An ordinary annuity pays 7.44% compounded monthly. A person deposits $100 monthly for 30 years and then makes equal monthly withdrawals for the next 15 years, reducing the balance to zero. What is the size of the monthly withdrawals? How much interes..

  What are the options market value and the price of the stock

The exercise price on one of Flanagan Company's options is $15, its exercise value is $22 and its time value is $5. What are the option's market value and the price of the stock?

  Compare the depreciation-amortization and depletion

For this discussion, assume that you are the chief financial officer for your organization and that you are preparing the organization's financial statement footnotes. What are the acceptable inventory valuation methods under U.S. GAAP? How does each..

  Dupree funds is considering the fees charged by two banks

Dupree Funds is considering the fees charged by two banks. First America charges a flat rate of $0.11 per payment and First Western requires a balance of $500,000 (that does not pay interest to Dupree foods), plus $.05 per payment. What is the number..

  Assume a municipal bond-what is the yield to call

Assume a municipal bond has 18 years until maturity and sells for $5.640 It has a coupon rate of 5.70 percent and it can be called in 10 years. What is the yield to call if the call price is 110 percent of par?

  Large decrease in inventory little additional inventory

According to the EOQ model, a very large increase in sales will result in a very large increase in inventory a decrease in inventory either a or b could be correct a large decrease in inventory little additional inventory.

  Equipment required for the project has no salvage value

You are the financial analyst for a tennis racket manufacturer. The company is considering using graphite like material in its tennis rackets. The company has estimated the information in the following table about the market for a racket with the new..

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