Question
1) Sarah purchased 100 shares of General. Electric stocks at a price of $55.54 Three months ago. She sold all stocks today for $59.04. During
1)
Sarah purchased 100 shares of General. Electric stocks at a price of $55.54 Three months ago. She sold all stocks today for $59.04. During the year. the stock paid dividends of $4.84 per share. What is Sarah's holding period return?
Round the answer to two decimal places in. percentage form.
2)
You purchased 250 shares of General Motors stock at a price of $87.03 two years ago.You sold all stocks today for $89.15. During this period the stock paid dividends of $3.13 per share. What is your annualized holding period return (annual percentage rate)?
Round your answer to two decimal places in percentage form.
3)
What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 11.52 percent per year, has a $1,000 par value, and. is currently priced at $953? The bond can be called back in 5 years at a call price $1,066. Assume annual coupon payments.
Round the answer to two decimal places ing percentage form.
4)
Use the information below to determine before-tax cost of debt financing of bond S.
________________________________________________Bond S
The selling Price of the Bond (P) $1,065
Number of years to Maturity (n) 17
Annual Coupon Rate, (Paid Annually) 16.48%
Par Value $1,000
Floatation Cost $4.25
Before-Tax Coat of Debt Financing (%) ?
Round. the answer to two decimal places in percentage form
You should use Excel or financial calculator.
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