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Financial Management assignment There are 20 questions in the DOC. Please help me out without a mistake. 1. Today, you sold 1 share of Litchfield

Financial Management assignment

There are 20 questions in the DOC.

Please help me out without a mistake.

image text in transcribed 1. Today, you sold 1 share of Litchfield Design stock. The percentage return over the past quarter (from 3 months ago to today) for these shares was 12.6 percent. You purchased the shares 3 months ago at a price of 66.06 dollars per share. You just received 4.95 dollars in dividends. What was the price of the stock when you sold it? 2. Oxygen Optimization stock has an expected annual return of 17.2 percent. The stock is expected to be priced at 88.91 dollars per share in 1 year and the stock currently has an expected dividend yield of 5.32 percent. What is the current price of the stock? 3. Fairfax Paint stock is expected to pay a dividend of 4.01 dollars in 1 year and a dividend of 4.75 dollars in 2 years. The stock is currently priced at 90.39 dollars and is expected to be priced at 95.95 dollars in 1 year. What is the price of Fairfax Paint stock expected to be in 2 years? The stock's dividend is paid annually and the next dividend is expected in 1 year. 4. Gareth owns 1 share of stock A and 1 share of stock B. In 1 year from today, the total value of his holdings is expected to be 121.68 dollars. Stock A is currently priced at 62.99 dollars, has an expected return of 15.58 percent, and is expected to pay a dividend of 5.8 dollars in 1 year from today. Stock B is currently priced at 56.77 dollars and is expected to pay a dividend of 4.59 dollars in 1 year from today. What is the expected return for stock B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 5. Maritza has one share of stock and one bond. The total value of the two securities is 1,085 dollars. The bond has a YTM of 12.56 percent, a coupon rate of 11.56 percent, and a face value of 1,000 dollars; pays semiannual coupons with the next one expected in 6 months; and matures in 10 years. The stock pays annual dividends and the next dividend is expected to be 6.15 dollars and paid in one year. The expected return for the stock is 15.28 percent. What is the price of the stock expected to be in 1 year? 6. The next three annual dividends paid by Oxygen Optimization stock are expected to be 5.46 dollars in one year, 3.22 dollars in two years, and 7.32 dollars in three years. The price of the stock is expected to be 74.17 dollars in two years. The expected annual return for the stock is 17.83 percent. What is the current price of one share of Oxygen Optimization stock? 7. Norma has one share of stock and one bond. The total value of the two securities is 1,365.55 dollars. The stock pays annual dividends. The next dividend is expected to be 4.45 dollars and paid in one year. In two years, the dividend is expected to be 6.33 dollars and the stock is expected to be priced at 111.38 dollars. The stock has an expected return of 17.94 percent per year. The bond has a coupon rate of 10.36 percent and a face value of 1,000 dollars; pays semiannual coupons with the next coupon expected in 6 months; and matures in 16 years. What is the YTM of the bond? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 8. A stock has a share price of 53.07 dollars and an expected annual return of 10.73 percent. The stock is expected to pay a constant dividend forever with the next annual dividend expected in 1 year. What is the present value of the annual dividend that is expected to be paid in 8 years from today? 9. What is the expected annual return for a stock that is priced at 80.53 dollars, is expected to pay a dividend of 2.7 dollars every quarter forever, and is expected to pay its next dividend in 3 months? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 10. Demarius owns investment A and 1 share of stock B. The total value of his holdings is 1,572.95 dollars. Investment A is expected to pay annual cash flows to Demarius of 240 dollars per year with the first annual cash flow expected later today and the last annual cash flow expected in 6 years from today. Investment A has an expected annual return of 11.32 percent. Stock B is expected to pay annual dividends of 39.36 dollars forever with the next dividend expected in 1 year. What is the expected annual return for stock B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 11. A stock has an expected annual return of 13.05 percent and is expected to pay annual dividends forever. The first annual dividend is expected in 1 year and all subsequent annual dividends are expected to grow at a constant rate of 3 percent per year. The dividend expected in 1 year from today is expected to be 19.9 dollars. What is the present value (as of today) of the dividend that is expected to be paid in 3 years from today? 12. What is the price of a stock expected to be in 7 years if the stock is expected to pay a dividend every year forever, the expected return for the stock is 8.21 percent per year, the next dividend is expected in 1 year, the next dividend is expected to be 6.47 dollars, and all subsequent dividends are expected to grow by 2.91 percent per year? 13. Common stock of Oxygen Optimization is currently priced at 57.1 dollars per share. The stock is expected to pay annual dividends that are expected to grow by 4.61 percent per year forever starting after the next dividend is paid in 1 year. The expected return on the stock is 10.94 percent per year. What is the dividend expected to be in 4 years? 14. Harris owns one share of stock of Fairfax Paint and one share of stock of Litchfield Design. The total value of his holdings is 119 dollars. Both stocks pay annual dividends that are expected to continue forever. The expected return on Fairfax Paint stock is 17.25 percent and its annual dividend is expected to remain at 11.24 dollars forever. What is the next dividend paid by Litchfield Design expected to be if the stock has an annual return of 16.39 percent and dividends are expected to grow by 5.5 percent annually? The next dividend for both firms' stocks will be paid in one year. 15. Kwame owns one share of stock of Fairfax Paint and one share of stock of Litchfield Design. The total value of his holdings is 149 dollars. Both stocks pay annual dividends that are expected to continue forever. The expected return on Fairfax Paint stock is 17.53 percent and its annual dividend is expected to remain at 10.13 dollars forever. The expected return on Litchfield Design stock is 10.08 percent. The next dividend paid by Litchfield Design is expected to be 4.59 dollars and all subsequent dividends are expected to grow at a constant rate. What growth rate is expected for Litchfield Design dividends? The next dividend for both firms' stocks will be paid in one year. Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 16. Court has one share of stock and one bond. The total value of the two securities is 1,593 dollars. The bond has a YTM of 6.65 percent, a coupon rate of 12.28 percent, and a face value of 1,000 dollars. The bond matures in 10 years and pays annual coupons with the next one expected in 1 year. The stock is expected to pay an annual dividend every year forever, the next dividend is expected to be 11.93 dollars in 1 year, all subsequent dividends are expected to grow at the same annual growth rate, and the expected return for the stock is 9.64 percent. What is the annual growth rate of the stock's dividend expected to be? Answer as a rate in decimal format so that 12.34% would be entered as . 1234 and 0.98% would be entered as .0098. 17. If 1) the expected return for Litchfield Design stock is 19.57 percent; 2) the dividend is expected to be 3.18 dollars in 2 year(s), 6.47 dollars in 4 years, and 9.86 dollars in 7 years; and 3) after the dividend is paid in 7 years, the dividend is expected to grow by 3.65 percent per year forever, then what is the current price of the stock? If no expected dividend is mentioned for a given year, assume the expected dividend is $0 for that year. 18. Middlefield Motors is evaluating a project that would cost 5,800 dollars today. The project is expected to have the following other cash flows: 2,610 dollars in 1 year, 2,330 dollars in 2 years, and 5,630 dollars in 4 years. The cost of capital of the project is 7.31 percent. What is the net present value of the project? 19. Gomi Waste Disposal is evaluating a project that would require an initial investment of 53,100 dollars today. The project is then expected to produce annual cash flows that grow by 3.09 percent per year forever. The first annual cash flow is expected in 1 year and is expected to be 5,080 dollars. The project's internal rate of return is 12.66 percent and its cost of capital is 10.91 percent. What is the net present value (NPV) of the project? 20. Gomi Waste Disposal is evaluating a project that would last for 4 years. The project's cost of capital is 8.18 percent; its NPV is 14,932 dollars; and the expected cash flows are 38,400 dollars at time 0, 27,660 dollars in 1 year, 34,270 dollars in 2 years, and X in 4 years. What is X

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