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(A) Suppose you purchased 1000 shares of Gogle at $50 per share, 1000 shares of Amazan at $30 per share, and 500 shares of Micosoft
(A) Suppose you purchased 1000 shares of Gogle at $50 per share, 1000 shares of Amazan at $30 per share, and 500 shares of Micosoft at $40 per share. Suppose over the next year Micosoft will have a return 12.5%, Amazan will have a return of 20%, and Gogle will have a return of -10%. What will be the return on your portfolio over the year? (1 mark). What will be the value of your portfolio at the end of the year? (1 mark) (B) The same stocks are traded in another stock market, where Micosoft has a return of 12.5%, Amazan has a return of 20%, and Gogle has a return of 10%. You have decided to purchase another 1000 shares of Gogle at $50 per share, 1000 shares of Amazan at $30 per share, and 500 shares of Micosoft at $40 per share. How will it affect your portfolio? (1 mark). (C) Nippon Motors has a share price of $250 today. If Nippon Motors is expected to pay a dividend of 8 this year, and its stock price is expected to grow to \270.5 at the end of the year, then calculate Nippon's dividend yield and equity cost of capital. (1 mark). (D)The Octal Software's common stock is currently trading for 75.00 per share. The stock is expected to pay a 5.0 dividend at the end of the year and the Octal Software's equity cost of capital is 13%. If the dividend payout rate is expected to remain constant, then calculate the expected growth rate in the Octal Software's earnings. (1 mark). (A) Suppose you purchased 1000 shares of Gogle at $50 per share, 1000 shares of Amazan at $30 per share, and 500 shares of Micosoft at $40 per share. Suppose over the next year Micosoft will have a return 12.5%, Amazan will have a return of 20%, and Gogle will have a return of -10%. What will be the return on your portfolio over the year? (1 mark). What will be the value of your portfolio at the end of the year? (1 mark) (B) The same stocks are traded in another stock market, where Micosoft has a return of 12.5%, Amazan has a return of 20%, and Gogle has a return of 10%. You have decided to purchase another 1000 shares of Gogle at $50 per share, 1000 shares of Amazan at $30 per share, and 500 shares of Micosoft at $40 per share. How will it affect your portfolio? (1 mark). (C) Nippon Motors has a share price of $250 today. If Nippon Motors is expected to pay a dividend of 8 this year, and its stock price is expected to grow to \270.5 at the end of the year, then calculate Nippon's dividend yield and equity cost of capital. (1 mark). (D)The Octal Software's common stock is currently trading for 75.00 per share. The stock is expected to pay a 5.0 dividend at the end of the year and the Octal Software's equity cost of capital is 13%. If the dividend payout rate is expected to remain constant, then calculate the expected growth rate in the Octal Software's earnings. (1 mark)
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