Question
Little Town Motors stock has produced returns of 13.8 percent, 11.7 percent, 2.3 percent, -21.4 percent, and 6.7 percent over the past five years, respectively.
Little Town
Motors stock has produced returns of 13.8 percent, 11.7 percent, 2.3 percent, -21.4 percent, and 6.7 percent over the past five years, respectively. What is the variance of these returns?
- A.
.035682
- B.
.020574
- C.
.019515
- D.
.020029
- E.
.031947
The current dividend yield on Kennedy Motors common stock is 2.49 percent. The company just paid an annual dividend of $1.56 and announced plans to pay $1.72 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock?
- A.
10.86 percent
- B.
12.75 percent
- C.
13.39 percent
- D.
15.82 percent
- E.
9.08 percent
What is the NPV of the following set of cash flows at a discount rate of zero percent? What if the discount rate is 14 percent?
Year | Cash Flow |
---|---|
0 | $21,400 |
1 | $11,600 |
2 | $13,500 |
3 | $12,200 |
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