The total return an investor can expect to earn from stock

Assignment Help Financial Management
Reference no: EM131296866

The total return an investor can expect to earn from a stock next year can be calculated as the

a) expected percentage price change plus the forward dividend yield.

b) sum of the risk-free rate and the stock’s risk premium.

c) estimated dividends for next year plus the difference between the estimated stock price one year from now and the current market divided by the estimated stock price one year from now.

d) difference between the estimated stock price one year from now and the current market price.

Reference no: EM131296866

Questions Cloud

Why should firms be concerned with changes in interest rates : Describe the four different types of unemployment and explain which type a college graduate would face upon entering the job market?
Firm is considering leasing a new radiographic device : Your firm is considering leasing a new radiographic device. The lease lasts for three years. The lease calls for four payments of $25,000 per year with the first payment occurring immediately. The computer would cost $140,000 to buy and would be stra..
What oil prices would look like in the near future : What oil prices would look like in the near future? What will oil prices do to the global economy in the future? Is the change of oil prices in the near future a good or bad change?
What impact might a high rate of immigration have on culture : What impact might a high rate of immigration have on culture and personal identity in the United States.
The total return an investor can expect to earn from stock : The total return an investor can expect to earn from a stock next year can be calculated as the
Describe three factors that influence market prices : What is the effect on the equilibrium price when there is a surplus or shortage?- Briefly describe three factors that influence market prices.
Analyze theories from nursing and relevant fields : Analyze theories from nursing and relevant fields with respect to their components, relationships among the components, logic of the propositions, comprehensiveness, and utility to advanced nursing - nursing theory as a way to resolve a problem or ..
What is an annotated bibliography : What is an Annotated Bibliography.write a short essay discussing your thoughts about and past experiences with research as well as the topic that you are considering for your annotated bibliography.
Primary sources of systematic risk of stock of firm : All of the following are primary sources of systematic risk of a stock of a firm except

Reviews

Write a Review

Financial Management Questions & Answers

  Sales-total assets and basic earning power

Companies HD and LD have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. Both firms finance using only debt and common equity and total assets equal total invested capital.

  Review the given two proquest articles on benefits of evm

Review the following two ProQuest articles on the benefits of earned value management (EVM) practices and myths.

  Project has an annual operating cash flow

A project has an annual operating cash flow of $15,477. Initially, this 4-year project required $4,368 in net working capital, which is recoverable when the project ends. The firm also spent $10,000 on equipment to start the project. This equipment w..

  Create a daily bar chart for mrk

Create a daily bar chart for MRK for August 2005-September 2005. - Use this chart to describe the Dead Cat Bounce.

  What is the stocks current rate of value per share

GROWTH VALUATION Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the stock’s current..

  Sharpe ratio and smallest expected loss

You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 13 percent and 16 percent, respectively. The standard deviations of the assets are 39 percent and 47 percent, respectively. What is the smalle..

  Calculate the share price for bills bakery

Bill’s Bakery expects earnings per share of $2.18 next year. Current book value is $3.9 per share. The appropriate discount rate for Bill’s Bakery is 13 percent. Calculate the share price for Bill’s Bakery if earnings grow at 4 percent forever.

  Find the arbitrage-free forward price of corn

The spot price of corn is $2.24 per bushel. The risk-free interest rate is 5% nominal annual compounded every two months. The storage costs for corn are $0.03 per month per bushel, paid at the end of each month. Find the arbitrage-free forward price ..

  What is the equivalent annual savings

Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $160,000 and sell its old low-pressure glueball, which is fully depreciated, for $28,000. What is the equivalent annual savings from the purchase..

  The futures price quote for contract

The current level of the S&P 500 is 1,500. The dividend yield on the S&P 500 is 7%. The risk-free interest rate is 8%. The futures price quote for a contract on the S&P 500 due to expire 6 months from now should be __________.

  Risk-adjusted assets-transactions affect the value

Onshore Bank has $29 million in assets, with risk-adjusted assets of $19 million. CET1 capital is $900,000, additional Tier I capital is $250,000, and Tier II capital is $418,000. How will each of the following transactions affect the value of the CE..

  Determining the rating to place on a companys bonds

For companies who issue debt through bonds, they often have a bond rating associated with them. What types of ratings can a bond have? Who rates the bonds? What do they look for when determining the rating to place on a company’s bonds?

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