When large-company stocks have a negative return

Assignment Help Financial Management
Reference no: EM131049773

The historical record for the period 1926-2013 supports which one of the following statements? A) When large-company stocks have a negative return, they will have a negative return for at least two consecutive years B) The return on U.S. Treasury bills exceeds the inflation rate by at least .5 percent each year. c) There was only one year during the period when double-digit inflation occurred. D) Small-company stocks have lost as much as 50 percent and gained as much as 100 percent in a single year. E) The inflation rate was positive each year throughout the period.

Reference no: EM131049773

Questions Cloud

Find the surface force on a small area da of the surface : Find the surface force on a small area dA of the surface x 2+ y2+ 2z2= 4 at the point (1, 1, 1).
Process of normalization to transform : Use the process of normalization to transform the table below into 3NF. Show the tables in 1NF and 2NF that are created in the process.
Assume the returns from an asset are normally distributed : Assume the returns from an asset are normally distributed. The average annual return for the asset is 18.1 percent and the standard deviation of the returns is 32.5 percent. What is the approximate probability that your money will triple in value in ..
Issue of preferred stock outstanding-what is market value : Bon Temps has an issue of preferred stock outstanding that pays stockholders a dividend equal to $10 each year. If the appropriate required rate of return for this stock is 8%, what is its market value?
When large-company stocks have a negative return : The historical record for the period 1926-2013 supports which one of the following statements? When large-company stocks have a negative return, they will have a negative return for at least two consecutive years.  The return on U.S. Treasury bills e..
Computer science assistance : Look up the altitude of a Globalstar satellite on the Internet. Use Kepler's formula to check the accuracy of a given period and altitude for a Globalstar satellite. Use the following exponent calculator to estimate the period.
The term of the loan under both loan arran : Suppose you work at the help desk of Daffodil Bank. Your job Is to help customers choosing the right financial product. Currently you are dealing with a customer who Is seeking a loan to buy a car costing $45.000 inclusive of GST.
Capital asset pricing model and wacc-beta coefficient : The “beta” coefficient for ABC is 1.25 based on the past information. The 30-day T-bill rate is 1.5%, The 5-year average market return of (say, S&P 500 index) in the same period is 11%. Suppose that ABC's current dividend is $1.24 per share with poss..
Calculate ym for each of the materials : Using appropriate software, calculate the speeds of longitudinal and transverse waves in the five materials listed in Problem 16.26. Arrange for the software to give you a nice readable table of values.

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss which mitigation strategies

Analyze all of the risks and mitigation strategies discussed this week in a brief summary, and discuss which mitigation strategies are not appropriate based on your informed judgment, and offer alternative mitigation strategies.

  The sludge dewatering processes

Yellow jacket, Inc., a large textile company, is trying to decide how long it should retain one of its machines used in the sludge dewatering processes. The machine currently is estimated to have a $35,000 market value and a future market value of $1..

  Determine its optimal average cash balance

The Duckett Group is trying to determine its optimal average cash balance. The firm has determined that it will need $5,000,000 net new cash during the coming year. According to the Baumol model, what is the optimal transaction size for transfers fro..

  What is the return from this investment

A parent decides to buy a two bedroom condo for $65,000 by putting 10% down and financing the rest for 15 years at an annual rate of 3.5%. What is the monthly payment? One bedroom is rented out to a roommate for $400 a month (payment received at the ..

  What is present value of the girls fortune

A 5 year girl was given a lottery ticket for her recent birthday. The ticket was the grand prize winner and is suppose to pay $80,000 per year after taxes, for 20 years. The state sued, however, and won the case arguing that it would pay the prize as..

  Six month call options with strike price and cost

Six month call options with strike price of $45 and $50 cost $7 and $4, respectively. What is the maximum gain when a bull spread is created from the calls? What is maximum loss when a bull spread is created from the calls? What is the maximum gain w..

  Metal fabrication-Pricing raw supplies of aluminum

A metal fabrication company is pricing raw supplies of aluminum. The following are the costs to the company to receive one tone of aluminum from various sources. Which source offers the best price for aluminum per ton?

  What is the value of a bond that has a par value

What is the value of a bond that has a par value of $1,000, a coupon rate of 17.24% (paid annually) and matures in 8 years? Assume a required rate of return on this bond is 13.53%.

  What is the price per share of the firm

You have been asked to calculate the price of a firm using free cash flow evaluation. Last year XYX Company has Free Cash Flow of $12 million. You expect the cash flows to grow at 10% for the next two years, then at 9% for the following two years and..

  What is difference between asset purchase and stock purchase

What is the difference between an asset purchase and a stock purchase? What is the difference between an operational restructuring and a financial restructuring?

  What is the depreciation tax shield for this project

Your firm needs a machine which costs $230,000, and requires $44,000 in maintenance for each year of its 10 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 10-year class life category. Assume a tax rate of 40..

  The trade-off theory of capital structure

Describe and explain in 2-3 pages the trade- off theory of capital structure. How is it related to the use of debt instead of stock (equity financing) in order to raise capital?

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