Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The stock of Trudeau Corporation went from $27 to $40 last year. The firm also paid $1 in dividends during the year. Compute the rate
The stock of Trudeau Corporation went from $27 to $40 last year. The firm also paid $1 in dividends during the year. Compute the rate of return. ( 2. Given the following financial data, compute the return on assets and return on equity: net income/sales = 7%, sales/total assets = 2.5X, and debt/total assets = 20%. 3. What is the approximate yield to maturity of an 8% coupon bond with a par value of $1,000? The bond is currently selling for $920 and has 5 years to maturity. 4. A convertible bond has a face value of $1,000 and the conversion price is $50 per share. The stock is selling at $30 per share. The bond pays $65 per year in interest and is selling in the market for $950. It matures in 7 years. Market rates are 10% annually. (I) What is the conversion ratio? (II) What is the conversion value? 5. If a $100,000 Treasury bond futures contract changes by 5/32, what is the dollar change? 6. A mutual fund is set up to charge a load. Its net asset value is $17.70 and its offer price is $18.60. What is the dollar value of the load (commission)? 7. A shopping center has an annual net operating income of $1,050,000 and a capitalization rate of 8%. What is its value? 8. An investment has the following range of outcomes and probabilities. Outcomes (Percent) Probabilities of Outcomes 5% .25 7% .50 12% .25 Calculate the expected value and the standard deviation (round to two places after the decimal point where necessary)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started