Answered step by step
Verified Expert Solution
Question
1 Approved Answer
coroporate finance 12) Below are the stock returns for the past five years for Glasgow Inc, knowing that the company uses the average method over
coroporate finance
12) Below are the stock returns for the past five years for Glasgow Inc, knowing that the company uses the average method over its history to track any expectation. What was the stock's closest coefficient of variation during this 5- year period? Year 2017 2018 2019 2020 2021 Stock Return 13.50% 16% 0% 17.25% 9% OA) 11.15 O B) 195 O C) 0.56 OD) 0.06 OE) None of the above 13. Moray wants to construct a complete portfolio of $125.000. She is planning that the complete portfolio be composed of Treasury bills that pay 5,5% and a risky portfolio, P. constructed with two risky securities, A and B. The optimal weights of A and B in Pare 75% and 25%, respectively. A has an expected rate of return of 14.5%, and has an expected rate of return of 11%. In order Moray to form a complete portfolio with an expected rate of return of 8.75%, she should (approximately) Invest of his complete portfolio in Treasury bills, A) 35% B) 40% C)604 OD)65% O E) None of the above 14. WKG just reported a current dividend yield on It's common stock for 4,56 percent. The company just paid a $1.78 annual dividend and announced plans to pay $1.8868 next year. The dividend growth rate is expected to remain constant at the current level. What is the closest price of the stock 3 years from today? OA) S41.47 B) $46.59 C) $49.39 D) S5235 OO O E) None of the above E) None of the above 15. Wagon Company's current stock price is $25.56, its last dividend was $2.40. and its required rate of return is 16.5%. If dividends are expected to grow at a constant rate, g. In the future and if rs is expected to remain at 16.5%, By how much the price of the stock will approximately change after 7 years from now? O A) $2.40 B) ($11.77) OC) $11.77 OD) $14.16 OE) None of the above 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