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I need help double checking the answers on my Finance Final please. 11 The risk-free rate is 3.6% and the required return on the market
I need help double checking the answers on my Finance Final please.
11 The risk-free rate is 3.6% and the required return on the market portfolio is 11.8%. A company that has just paid $1.80 per share in annual dividends has a beta of 0.9 and long-term growth rate of 5.2%. What is the dollar value of this stock? A: B: C: D: E: 12 Rob pays 28% in combined local, state, and federal taxes. If a corporate bond yields 8.3%, what is the after-tax yield? A: B: C: D: E: 13 $0.00 $1.09 $1.24 $1.49 $1.62 Information included in \"tombstone ads\" include all of the following EXCEPT: A: B: C: D: E: 15 2.3% 6.0% 8.3% 10.7% 11.5% The risk-free rate is currently 2.8%. In one year the price of a given share of stock that currently trades at $40 per share is expected to either increase by 8% or decrease by 2%. What is the current value of a call on this stock with exercise price of $40? A: B: C: D: E: 14 $17.25 $20.99 $24.56 $31.14 $32.76 The bond issuer The price of the bond The size of the issue The maturity date The coupon Advantages of investing in tax-exempt bond funds include all of the following EXCEPT: A: B: C: D: E: Diversification Provides additional benefits to tax-deferred retirement plans Automatic reinvesting Fund maintains individual investor's tax reports and records Low initial deposit The next two problems refer to a four year project with an opportunity cost of 9% and the following cash flows: 16 What is the safe-rate-reinvestment-rate IRR for this project? A: B: C: D: E: 17 What is the borrowing-rate-reinvestment-rate IRR for this project? A: B: C: D: E: 18 Greed Utility Return Risk Beta Susan has 40% of her portfolio invested in a mutual fund to track the S&P 500 and 40% in a mutual fund to track the Dow Jones Industrial Average (DJIA) and 20% in government securities. To evaluate the performance of her portfolio, what is Susan's best benchmark? A: B: C: D: E: 20 10.6% 11.1% 11.6% 12.1% 12.6% The satisfaction an investor gets out of consumption of goods and services and out of obtaining a given level of wealth is A: B: C: D: E: 19 10.6% 11.1% 11.6% 12.1% 12.6% Duration the DJIA Index the S&P 500 Index a government security index a 50%/50% combination of A and B a combination of A, B, and C A: Increases with maturity B: Measures the linear relationship between bond prices and bond yields C: Is always greater than the maturity D: All of the above are true E: A and B are true, but C is falseStep by Step Solution
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