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PleaSe show all steps for every question a) You hold $25,000 in Treasury Bills with your broker. You ask him to short 1,000 shares of

PleaSe show all steps for every question

a) You hold $25,000 in Treasury Bills with your broker. You ask him to short 1,000 shares of Bomb-Bar-Day, and the stocks current market price is $50. Your broker has a short sale maintenance margin of 30%. You will get a margin call if the stock ...

b)Black Kat Inc. is expecting a period of intense growth, so it has decided to retain more of its earnings to help finance that growth. As a result it is going to reduce its annual dividend by 10% a year for the next three years. After that it will maintain a constant dividend of $0.75 a share. The company just paid a dividend of $1.80 per share. What is the market value of this stock if the required rate of return is 13%?

c) The effective annual required rate of return on the ordinary shares of Southeast Corporation is 18%. The shares' expected dividend yield for year one is 4%. The shares' annual dividends are expected to grow at a constant annual rate forever. Whats the expected annual dividend growth rate?

d) You purchased a stock one year ago for $91.20. Today you sold the stock and realized a total return of 63.7% on your investment. During the year you received a total of $2.28 in dividends. At what price did you sell the stock?

e) Beaksley, Inc. is a very cyclical type of business which is reflected in its dividend policy. The firm pays a $2.00 a share dividend every other year. The most recent dividend was just paid today. Five years from now, the company is repurchasing all of the outstanding shares at a price of $50 a share. At an 8% rate of return, what is this stock worth today?

f)NanTech Corporation's next dividend is expected to be $1.75. Dividend growth has been a consistent 7% per year. If investors want a 12% return, determine the stock price 5 years ago.

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