Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1.ImaginethatonJune4,theDowJonesIndustrialAverageclosedat13,598.14,whichwasup148.86pointsfromthepreviousday'scloseof13,449.28.Calculatethereturn,inpercenttofourdecimalplaces,ofthestockmarketforJune4. 2.Thecostperstockatabrokeragefirmis$0.10.Calculatehowmuchmoneyyouwouldneedtobuy150sharesofHiTech,Inc.,whichtradesat$18.22. 3.HiTech,Inc.'sgrowthforthefutureisforecastedtobeaconstant10percent.HiTech'snextdividendisexpectedtobe$1.18.CalculatethevalueofHiTechstockwhentherequiredreturnis12percent. 4.PreferredstockfromHiTech,Inc.pays$1.20inannualdividend.Calculatethevalueofthestockiftherequiredreturnonthepreferredstockis4.5percent. 5.HiTech,Inc.hasearningspershareof$1.82andaP/Eratioof31.54.Calculatethestockprice. Please provide the steps to get to the solution.Basically,I must show my work.
- 1.ImaginethatonJune4,theDowJonesIndustrialAverageclosedat13,598.14,whichwasup148.86pointsfromthepreviousday'scloseof13,449.28.Calculatethereturn,inpercenttofourdecimalplaces,ofthestockmarketforJune4.
- 2.Thecostperstockatabrokeragefirmis$0.10.Calculatehowmuchmoneyyouwouldneedtobuy150sharesofHiTech,Inc.,whichtradesat$18.22.
- 3.HiTech,Inc.'sgrowthforthefutureisforecastedtobeaconstant10percent.HiTech'snextdividendisexpectedtobe$1.18.CalculatethevalueofHiTechstockwhentherequiredreturnis12percent.
- 4.PreferredstockfromHiTech,Inc.pays$1.20inannualdividend.Calculatethevalueofthestockiftherequiredreturnonthepreferredstockis4.5percent.
- 5.HiTech,Inc.hasearningspershareof$1.82andaP/Eratioof31.54.Calculatethestockprice.
Please provide the steps to get to the solution.Basically,I must show my work.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
