What is the APR and EAR of your investment

Assignment Help Financial Management
Reference no: EM13732280

You bought a stock four months ago for $74.32 per share. The stock paid no dividends. The current share price is $76.84.

Required:

What is the APR and EAR of your investment? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Investment

APR        % 

EAR        %  

Reference no: EM13732280

Questions Cloud

Whats the amount of this home equity loan : A person purchased a house 20 years ago for $270,000 by paying 20% down and signing a 30-year mortgage at 9.45% compounded monthly. The current appraised value of the house is $390,000. If a bank will loan this person 95% of the equity in the house, ..
Find to the nearest cent his credit card balance six months : Bob has $15,000 in credit card debt at 18% annual interest compounded monthly. If he makes no more purchases with the card, and pays $190 on this card at the end of each month, find to the nearest cent his credit card balance six months from now.
Debt ratio and equity ratio : Suppose the debt ratio for a company is 45%. The after tax cost of debt is 5% and the cost of retained earnings is 12%. What is the WACC of this company based on the information given? suppose the Debt over equity ratio (D/E) for a company is 1.6. Th..
Capital investment proposals : The division managers of Chester Construction Corporation submit capital investment proposals each year for evaluation at the corporate level. Typically, the total dollar amount requested by the divisional managers far exceeds the company’s capital i..
What is the APR and EAR of your investment : You bought a stock four months ago for $74.32 per share. The stock paid no dividends. The current share price is $76.84. What is the APR and EAR of your investment? (Do not round intermediate calculations. Enter your answers as a percentage rounded t..
Net present value or internal rate of return : You are considering purchasing a house to rent to students. Would you use net present value (NPV) or internal rate of return (IRR) to evaluate this type of project?
Dividend is expected to grow at a constant rate : Thomas Brothers is expected to pay a $2.6 per share dividend at the end of the year (that is, D1 = $2.6). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 19%. What is the stock's curr..
Fee founders has perpetual preferred stock outstanding : Fee Founders has perpetual preferred stock outstanding that sells for $48.00 a share and pays a dividend of $4.00 at the end of each year. What is the required rate of return?
Expanding rapidly-currently needs to retain all of earning : Micro Tech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Micro tech to begin paying dividends, beginning with a dividend of $1.50 coming 3 years from to..

Reviews

Write a Review

Financial Management Questions & Answers

  Discount rate should you use to evaluate warehouse project

As a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. What discount rate should you use to evaluate the warehouse project?

  What is the operating cash flow

Your firm has net income of $259 on total sales of $1,100. Costs are $620 and depreciation is $110. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?

  The colin powell paper

The Colin Powell paper.

  Require an effective annual interest rate

You are considering a 20-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semi-annually. If you require an "effective" annual interest rate (not a nominal rate) of 10.59%, how much should you be willing to pay for the bond? Do..

  Using constant-growth model-estimate value of giants stock

Giant Enterprises’ stock has a required return of 14.8%. The company, which plans to pay a dividend of $2.60 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over the..

  What is the net advantage to leasing

Delamont Transport Company (DTC) is evaluating the merits of leasing versus purchasing a truck with a 4-year life that costs $50,000 and falls into the MACRS 3-year class. If the firm borrows and buys the truck, the loan rate would be 9%, and the loa..

  What is the fee schedule for these services

What is the fee schedule for these services, assuming that the goal is to cover only variable and direct fixed costs?

  Top gun records and several movie studios have decided to

top gun records and several movie studios have decided to sign a revenue-sharing contract for dvds. each dvd costs the

  What is the internal rate of return on this new plant

Microwave Oven Programming, Inc is considering the construction of a new plant. The plant will have an initial cash outlay of $7 million (= -$7 million), and will produce cash flows of $2.9 million at the end of year 1, $5 million at the end of year ..

  What is its after-tax cost of debt

Micro Spinoffs, Inc., issued 20-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,120. If the firm’s tax bracket is 30%, what is its after-tax cost of debt? (Do not round intermediate calculat..

  Find the internal rate of return for series of cash flows

Find the internal rate of return for the following series of cash flows. The initial outlay is $670,560.

  What is the fixed charge coverage

A firm has a net income before interest and taxes of $193,000 and interest expense of $28,000. What is the times-interest-earned ratio? And if the firm's lease payments are $48,500, what is the fixed charge coverage?

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