Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with these homeowrk problems! 13. If Dell Computer expects to issue a bond that has a yield of 5.8% and the city of

please help with these homeowrk problems! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
13. If Dell Computer expects to issue a bond that has a yield of 5.8% and the city of Austin is issuing a municipal bond that has a vield of 5% What tax bracket must you be in to be indifferent between owning these two bonds? OA) 10.16% OB) 5% OC) 13.79% OD) 0.8% E) 86.21% Question 14 (3.5 points) Listen 14. In financial decision making the relevant comparison of investment alternatives is after-tax A) True OB) False Question 15 (3.5 points) 4. Listen 15. What is the portfolio weight for Amazon if you invest $4,000 in it. $4,500 In Boeing, and $7.000 in Home Depo? AJ 0.258 B) 0.400 28 DI 0.462 E) 0.20 Question 16 (35 points) Lista 16. If the data shows that the financial market is Semi-strong-form Efficient, then 420 O 39 APR 6 16. If the data shows that the financial market is Semi-strong-form Efficient, then Investors cannot make an above average rate of return (abnormal rate of return) consistently by using: A) Inside Information OB) Public information C) Historical Information D) all the above (A)-(C) E) Both (B) and (C) Question 17 (3.5 points) Listen 17. Stock move on the non-surprise component of public announcements O A True OB) False Question 18 (3.5 points) 18. f 25% of your money is invested in Stock A with a 6% expected return, 55% of your money in Stock B with a expected return of -4%, and 20% of your money is invested in Stock C with an expected return of 8%, then what is the expected return for this portfolio? OA) 10% B) 5.3% 90.9% Dj 16% E9% Question 1935 points) 420 39 APR Listen 19. The returns for Tapit.com over the last 3 years are given below. Assuming no dividends were paid, what was the 3-year "average Holding period return for Tapit? Given the following Information: Year 1 return 12% Year 2 return.8% Year 3 return 1% OA) 3% O B) 6,65% OC) 0.665% OD) 1% OE) 1.007% Question 20 (3.5 points) Listen 20. If the market risk premium is 6.5%, the beta for Company ABC is 1.4, and the U.S. T-Bill rate is 1.2%, then what is the expected return fair market return) to Company ABC? O A) 7.7% B) 10.3% 16.5% D) 18.2% E) 3.7% Question 21 (6 points) 21. Starbucks, Inc. just paid a dividend of $10.45. You expect that dividends will grow by 3 percent for the next year, then you expect dividends will stay flat at $4.70 for eight years, and then after that dividends grow at 1.8% rate indefinitely, what would you be willing to pay for a share of stock if the required return is 6 percent? O A $148.183 B $105.122 420 23. You are thinking of purchasing one of Jittery Joe's Coffee Shop's twenty-year bond that has twelve years left to maturity. It has a coupon rate of 5.80 percent and makes semiannual payments. If the YTM on these bonds is 5.4 percent, what is the current bond price? O A $1,000 B) $1,039 C) 5509.795 D) $1,034.99 OE) $924.019 Question 24 16 points) 24. If you have three stocks, with the following variances and betas. (A) which stock has the most risk: (B) which stock has the most systematic risk; and (C) which stock should have the highest expected return? Beta Stock Stock Stock Vurace 070015 0.1456 0.0021 3,1 A) Most risk Stock B; most systematic risk Stock Chighest expected return Stock A B) Most risk Stock C, most systematic risk Stock C, highest expected return Stock C) Most risk Stock B; most systematic risk Stock C highest expected return Stock D) Most risk Stock 8; most systematic risk Stock A highest expected return Stock B Most risk Stock C, most systematic risk Stock As highest expected return Stock A H Question 25 16 points) Lista 25. What is the coupon of a bond that is selling for $996, has nine years left to maturity and has a YTM of 7%? 420 9 APR 6 Stock Stock Stock 0.0045 0.1456 00023 22 3.1 OA) Most risk Stock B; most systematic risk Stock Chighest expected return Stock B) Most risk Stock C: most systematic risk Stock C: highest expected retum Stock OC Most rink Stock B; most systematic risk Stock C, highest expected return Stock C DI Most risk Stock 8, most systematic risk Stock As highest expected return 8) Most risk Stock C, most systematic risk Stock A highest expected return Stock Stock B Question 25 16 points 25. What is the coupon of a bond that is selling for $996, has nine years left to maturity and has a YTM of 7%? Al 570.45 B) 596 O $69.39 O 05100 OE $152.87 125 questions 420 39 O A Co

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Digital Media And Communication

Authors: Leah Lievrouw ,Brian Loader

1st Edition

036761233X, 978-0367612337

More Books

Students also viewed these Finance questions