Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

attempt all Jumbuck Explaration nas a current stock price of $2.65 and is expected to sell for $2.78 in one year's tirne, imrnediately affer it

attempt all
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Jumbuck Explaration nas a current stock price of $2.65 and is expected to sell for $2.78 in one year's tirne, imrnediately affer it pays a dividend of $0.31. Which of the following is closest to Jumbuck Exploration's equty cost of capital? A. 2075% B. 8.3% C. 16.6% D. 996% NoGrowth industres presenty pays an annual dividend of $1.20 per stare and it is expected that these dividend poyments will continue indefiniedy if Nocrowth's equity cost of captal is 8%, then the value of a share of NoGrowth's stock is closest to: A. 51500 B. $1200 c. 51650 D. 51800 The 1shares Bond index fund (TLT) has a mean and annual standard deviation of returns of 7% and 12%, respectiver. What is the 66% confidence interval for the returns on TLT? A. T%,12% B. 5%,19% C. 7%,12% D. 12%,12% Your estimate of the market risk premum is 7%. The risk-ftee rate of retum is 37% and General Motors has a beta of 1.7. According to the Capital Asset Pricing Model (CAPM), what is its expected return? A. 16.4% B. 15.6% C. 148% D. 14% Suppose you invested 558 in the ishares Dwidend Stock fund (OVY) a month ago. It paid a dividend of 50.92 todiay and then you sold it for 562 What was your return on the investment? A. 8.194 B. 7.45% C. 521% D. 5965 The S8P 500 index delivered a return of 20%,15%,20%, and 5% over four successive years. What is the anthmetic average annual return per year? A. 9% B. 7.5% C. 8.25% D. 11.25%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Futures And Options Markets

Authors: John Hull

9th Global Edition

1292422114, 9781292422114

More Books

Students also viewed these Finance questions

Question

Describe new developments in the design of pay structures. page 501

Answered: 1 week ago