Reference no: EM131329182
Yesterday, September 22, 2009, Wireless Logic Corp. (WLC) paid its annual dividend of $1.25 per share. Because WLC's financial prospects are particularly bright, investors believe the company will increase its dividend by 20 percent per year for the next four years. After that, investors believe WLC will increase the dividend at a modest annual rate of 4 percent. Investors require a 16 percent return on WLC stock, and WLC always makes its dividend payment on September 22 of each year.
a. What is the price of WLC stock on September 23, 2009?
b. What is the price of WLC stock on September 23, 2010?
c. Calculate the percentage change in price of WLC stock from September 23, 2009, to September 23, 2010.
d. For an investor who purchased WLC stock on September 23, 2009, received a dividend on September 22, 2010, and sold the stock on September 23, 2010, what was the total rate of return on the investment? How much of this return came from the dividend, and how much came from the capital gain?
e. What is the price of WLC stock on September 23, 2013?
f. What is the price of WLC stock on September 23, 2014?
g. For an investor who purchased WLC stock on September 23, 2013 received a dividend on September 22, 2014, and sold the stock on September 23, 2014, what was the total rate of return on the investment? How much of this return came from the dividend, and how much came from the capital gain? Comment on the differences between your answers to this question and your answers to part (d).
|
What should the stock sell for today
: Carbohydrates Anonymous (CA) operates a chain of weight-loss centers for carb lovers. - If the market requires an 11 percent return on CA stock, what should the stock sell for today?
|
|
Computes a dh key with bob without bob noticing
: We consider certificate generation with CA-generated keys. Assume the second transmission of (CertA, kpr,A) takes place over an authenticated but insecure channel, i.e., Oscar can read this message.
|
|
How would you define hughess vision of america
: How would you define Hughes's vision of America? How can it be said that Hughes is engaged in a continuous dialogue with the principles of the founding fathers?
|
|
What is the current selling price of the stock
: Investors expect an 8 percent return on Hill Propane common shares. What is the current selling price of the stock?
|
|
What is the price of wlc stock on september 23
: What is the price of WLC stock on September 23, 2009?- What is the price of WLC stock on September 23, 2010?
|
|
Evaluate the planning function of management
: Evaluate the planning function of management as it relates to the organization's goals and strategies. Use steps in the planning process outlined in the text.
|
|
Explain in detail the characteristics of organized crime
: Explain in detail the 12 characteristics of organized crime. Explain how these characteristics differentiate organized crime from other types of crime. Explain two social factors that contribute to the existence of human trafficking aka modern sla..
|
|
Compute the key pairs kao and kbo
: We reconsider the Diffie-Hellman key exchange protocol. Assume now that Oscar runs an active man-in-the-middle attack against the key exchange as explained in Sect. 13.3.1.
|
|
Calculate the price of the stock on the given dates
: Calculate the price of the stock on the following dates: March 30, 2009; March 30, 2013; and September 30, 2010.
|