coroporate finance

8) You hold a diversified portfolio consisting of a number of different common stocks each stock value is $7,000. The portfolio beta is equal to 2.35. You have decided to sell one of your stocks that has a beta equal to 2.85 for $7,000. You plan to use the proceeds to purchase another stock that has a beta equal to 0.65. Then the portfolio new beta is 2.2125. Then how much is the approximate total number of common stocks you have in your portfolio? OA) 20 shares OB) 18 shares O C) 16 shares O D) 10 shares O E) None of the above Gandis 129 9. Stephane manages a $3.5 million mutual fund that has a beta of 1.55 and a 12% required return. The risk-free rate is 4.25%. Stephane now received another $1.5 million, but the portfolio required return decreased in total by 2.5%, then what could be the beta on the new stock added? choose the closest choice O A) (0.1167) O B) 0,565 OC) 1.235 OD) (2.5) O E) None of the above 10. The current dividend yield on Ford's common stock is 5.75 percent. The company just paid a $1.8 annual dividend and announced plans to pay $1.908 next year. The dividend growth rate is expected to remain constant at the current level. If BMW's common stock has a same required rate of return as Ford's common stock but currently paid a dividend for $2.65 and its price exceeds that's of Ford's by $5.7504 then how much could be the growth rate for BMW's stock? choose the closest choice OA) 4.6% O B) 6% O C) 9.2% OD) 11% E) None of the above 11) Lexis Company's current stock price is$105.00 and is expected to increase to $130.441 in 3 years, and its last dividend was $3.25, If dividends are expected to grow at a constant rate, g, in the future and if rs is expected to remain also constant, what is Lexis's stock approximate expected rate of return? O A) 5.25% O B) 8.72% O C) 10.83% OD) 12.50% E) None of the above 8) You hold a diversified portfolio consisting of a number of different common stocks each stock value is $7,000. The portfolio beta is equal to 2.35. You have decided to sell one of your stocks that has a beta equal to 2.85 for $7,000. You plan to use the proceeds to purchase another stock that has a beta equal to 0.65. Then the portfolio new beta is 2.2125. Then how much is the approximate total number of common stocks you have in your portfolio? OA) 20 shares OB) 18 shares O C) 16 shares O D) 10 shares O E) None of the above Gandis 129 9. Stephane manages a $3.5 million mutual fund that has a beta of 1.55 and a 12% required return. The risk-free rate is 4.25%. Stephane now received another $1.5 million, but the portfolio required return decreased in total by 2.5%, then what could be the beta on the new stock added? choose the closest choice O A) (0.1167) O B) 0,565 OC) 1.235 OD) (2.5) O E) None of the above 10. The current dividend yield on Ford's common stock is 5.75 percent. The company just paid a $1.8 annual dividend and announced plans to pay $1.908 next year. The dividend growth rate is expected to remain constant at the current level. If BMW's common stock has a same required rate of return as Ford's common stock but currently paid a dividend for $2.65 and its price exceeds that's of Ford's by $5.7504 then how much could be the growth rate for BMW's stock? choose the closest choice OA) 4.6% O B) 6% O C) 9.2% OD) 11% E) None of the above 11) Lexis Company's current stock price is$105.00 and is expected to increase to $130.441 in 3 years, and its last dividend was $3.25, If dividends are expected to grow at a constant rate, g, in the future and if rs is expected to remain also constant, what is Lexis's stock approximate expected rate of return? O A) 5.25% O B) 8.72% O C) 10.83% OD) 12.50% E) None of the above