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Compute the following: 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. has earnings per share of $1.82 and a P/E ratio of 31.54. Calculate the stock price.
Compute the following:
- 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. has earnings per share of $1.82 and a P/E ratio of 31.54. Calculate the stock price.
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