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Good Evening, In need of assistance for assignment attached. Thank you Question 1 (1 point) Which of the following features is generally NOT associated with
Good Evening,
In need of assistance for assignment attached.
Thank you
Question 1 (1 point) Which of the following features is generally NOT associated with preferred stock? Question 1 options: Preference in dividends. Voting rights. Convertability to common stock. Callability at the option of the corporation. Question 2 (1 point) Which of the following is generally NOT a right granted to owners of preferred shares? Question 2 options: Callability. Preference with regards to receiving dividends. Convertibility to common shares. Variable dividend amounts. Question 3 (1 point) Which of the following statements about a preferred stockholder's rights to the company's income is NOT true? Question 3 options: Dividends to common and preferred shareholders are paid at the same time. A preferred stock's par value represents the original investment when the shares were issued. When a business is liquidated, preferred shareholders receive funds equal to the stock's par value. The price of both common and preferred shares are subject to market determinants. Question 4 (1 point) A company goes bankrupt and its assets are to be divided between its shareholders and debtholders. Which of the following, from highest priority to lowest, is the correct order of how the company's assets should be divided? Question 4 options: Bondholders, common shareholders, preferred shareholders. Preferred shareholders, common shareholders, bondholders. Bondholders, preferred shareholders, common shareholders. Preferred shareholders, bondholders, common shareholders. Question 5 (1 point) A company a constant growth rate of 3%. The company's risk adjusted discount rate is 5%. The company has a $2 dividend. What is the per share value of the stock? Question 5 options: $105 $52.50 $103 $51.50 Question 6 (1 point) A company has cost of equity of 8% and a dividend growth rate of 3%. Its dividends for next year is $2.20 per share. What should the stock's price be? Question 6 options: $27.00 $0.22 $4.40 $44.00 Question 7 (1 point) Which of the following statements regarding corporate valuation approaches is true? Question 7 options: The weighted average cost of capital is an approach used to find the value of a business. One of the variables in the Capital Asset Pricing Model is the cost of equity. A downside of the asset-based approach of valuing a company is that it is not objective. The income approaches rely on using discount rates to determine a company's value. Question 8 (1 point) An investment portfolio has a 30% chance of earning $125,000 in a year, a 40% chance of earning $50,000, a 15% chance of earning nothing and 15% chance of losing $20,000. What is its expected return? Question 8 options: $54,500 $62.000 $38,750 $50,000 Question 9 (1 point) A portfolio has $70,000 of bonds and $30,000 of stock. The bonds are 80% likely to have a 10% return and 20% likely to have a 0% return. The stock is 50% likely to have a 20% return and 50% likely to have a 10% loss. What is the expected return? Question 9 options: 13% 5.9% 7.1% 2.9% Question 10 (1 point) What factors should be considered when weighting an investment portfolio? Question 10 options: The time frame of the investment. The specific risks of the individual securities. The investor's risk tolerance. All of these answers. Question 11 (1 point) A company issues a bond with the provision that it may pay off the debt early. This bond is subject to which type of risk? Question 11 options: Model risk. Interest rate risk. Prepayment risk. All of these answers. Question 12 (1 point) Using the Value at Risk methodology, an investment advisor says that she is 90% sure that her investment portfolio will not lose more than $250,000 in a given day. Based on that description, which of the following statements is true? Question 12 options: All of these answers. The portfolio will lose more than $250,000 every month. Investors should expect to see losses 1 out of every 10 days. t is 90% sure that the portfolio will not earn more than $250,000 in a given day. Question 13 (1 point) A portfolio has a 95% certainty that it won't lose more than $50,000 in a given day. On the big loss days, there is a 30% chance the portfolio will lose $50,000 and a 70% chance it will lose $75,000. What is the portfolio's expected shortfall? Question 13 options: ES_0.95 =$57,500 ES_0.95 = $67,500 ES_0.05 = $67,500 ES_0.05 = $57,500 Question 14 (1 point) A portfolio is composed of 30% stock, 20% bonds, and 50% mutual funds. The stock is expected to have a 10% return, the bonds a 5% return and the mutual funds a 7% return. What is the expected return of the portfolio? Question 14 options: 7.3% 8.1% 7.5% 7% Question 15 (1 point) A portfolio is composed of 80% stock and 20% bonds. The variance of stock is 170 and the variance of bonds is 140. The covariance is 30. What is the portfolio's variance? Question 15 options: 168 114 119 101Step by Step Solution
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