What is the apr and ear of your investment

Assignment Help Financial Management
Reference no: EM13927654

You bought a stock three months ago for $75.82 per share. The stock paid no dividends. The current share price is $79.09. What is the APR and EAR of your investment?

Reference no: EM13927654

Questions Cloud

Assume that you are the manager of assembl : Assume that you are the manager of Assembly, Inc. You have just received an order for 40 units of an industrial robot, which is to be delivered at the start of week 7 of your schedule.
What percentage of value should be allocated to equity : What percentage of value should be allocated to equity in WACC computations for a firm with $60 million in debt selling at 85% of par, $70 million in book value of equity, and $50 million in market value of equity?
Compute the value of Acme Common Stock : Suppose you have a $1,000 face value bond with 12 years to maturity, a coupon rate of 6% and a yield to maturity of 8%. If the bond makes semiannual payments, what is its price today? Compute the value of Acme Common Stock if the next dividend is exp..
Series average return standard deviation : Consider the following table for the total annual returns for a given period of time. Series Average return Standard Deviation Large-company stocks 11.1 % 19.9 % Small-company stocks 16.4 33.0 Long-term corporate bonds 6.2 8.4 Long-term government bo..
What is the apr and ear of your investment : You bought a stock three months ago for $75.82 per share. The stock paid no dividends. The current share price is $79.09. What is the APR and EAR of your investment?
What is the tax shield and cash flows : You must evaluate a proposal to buy a machine. The cost of the machine including shipping, modification and installation costs is 100,000. The machine will be depreciated using MACRS 3 year class life 33%, 45%,,15%7%) sold after 3 years for 12,000. T..
Apple stock currently trades : Apple stock currently trades at $500/share. The present value of dividends paid in the next 6 months is $24.51 (using risk-free discounting). These dividends are known today with certainty. The yield curve is flat at 4%. What is the fair forward pric..
What are the two principal reasons for holding cash : What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons? What are the four elements of a firm's credit policy? To what extent can firms set their own..
Computed all of the liquidity ratios for a company : You have computed all of the liquidity ratios for a company, and each of them appears to be close to or better than the industry averages. What other information would you want before you made a final assessment of the company's short-term debt payin..

Reviews

Write a Review

Financial Management Questions & Answers

  Monthly payment-principal and interest

You wish to qualify for a $200,000 mortgage. Your monthly payment (principal and interest) must not exceed 25% of your monthly income. Your monthly payment plus taxes and insurance must not exceed 28% of your monthly income. Which of the following be..

  Considering the replacement

Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $24,000 to $54,000 per year. The new machine will cost $85,000, and it will have an estim..

  Discuss the relationship between payroll and victories

In 2012, the total payroll for the New york Yankees was almost 200million, while the total payroll for the Oakland Athletics (a team known for using basball analytics or sabermetrics) was about 55million, less than one-third of the Yankees payroll. d..

  Income stream of payments

Travis is offered the following income stream of payments: $10,000 in one year, $20,000 in two years, and 50,000 in five years. How much should Travis be willing to pay for this income stream if his opportunity cost of capital is 6.5%?

  What is the coupon rate of these bonds

The current price of a $1,000 par bond is $1,101.72 and coupons are paid semi-annually in the amount of $38.50. What is the coupon rate of these bonds?

  Consistent with the semi-strong form of market efficiency

Geothermal corporation issued a press release before the stock market opened announcing that its earnings are above last year’s earnings. Explain how each of the following individual scenarios could be consistent with the semi-strong form of market e..

  The dividend should grow rapidly

Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $2.00 coming 3 years from toda..

  Amount of the operating cash flow-long-term debt

The Beach House has sales of $790,000 and a profit margin of 7 percent. The annual depreciation expense is $80,000. What is the amount of the operating cash flow if the company has no long-term debt?

  Incorporating foreign equity and foreign debt in a portfolio

You are a young portfolio manager who has just been assigned a new portfolio. The current strategic asset allocation of the portfolio is 80% equity and 20% fixed income securities. The entire portfolio is invested in U.S securities only. What are the..

  Describe the concept of market efficiency

Describe the concept of market efficiency. In what sense is the concept an important part of the shareholders wealth maximization objective.

  Why is marketing an function in a market based economy

Discuss why is marketing an function in a market based economy.

  Calculate the dividend yield on a stock

Calculate the dividend yield on a stock with the following information: (a) Growth Rate: 9%, (b) Price: $36.53, and (c) Dividend: $2.46.

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