Finance questions

Finance questions

Question # 00044928 Posted By: neil2103 Updated on: 01/29/2015 02:53 PM Due on: 01/31/2015
Subject Finance Topic Finance Tutorials:
Question
Dot Image

A stock will pay a semi-annual dividend of $0.50 per share forever. However, the company will not pay the first dividend until exactly 2 years from today. If the annual interest rate is 12%, what is the stock price per share today???


A. $7.2
B. $4.2
C. $6.8
D. $8.6


A bond has coupon rate=15% and YTM=12%. This bond is a
A. par bond
B. discount bond
C. premium bond
D. none of the above

A stock will not pay any dividends for 5 years. Then the company will begin paying annual dividends, the first to be received exactly 6 years from today in the amount of $2 per share. This annual dividend is expected to grow by 4% each subsequent year and continue to be paid forever. If the annual interest rate is 14%, what is the stock price per share today?
A. $14.3
B. $10.4
C. $50.0
D. $12.4

A stock pays a quarterly dividend of $4. The first dividend will be received in exactly one quarter. This dividend payment is expected to continue forever. If the annual interest rate is 10%, what is the stock price per share today?
A. $165.88
B. $3.64
C. $40.00

D. $160.00

You buy a zero coupon bond with maturity 8 years, face value equal to $500, and YTM=9%. Two years later the YTM has decreased to 7%. If at this time you sell your bond (you sell 2 yrs after you bought), what annual return will you realize?
A. 9%
B. 33%
C. 15%
D. 7%

A stock pays semi-annual dividends of $3, the first dividend will be paid in exactly 6 months. This will continue for 4 years (8 dividends). Then the amount will increase to $6 (starting with the 9th dividend) and this $6 semi-annual dividend will continue forever. So, there will be 8 semi-annual $3 dividend payments, and the 9th dividend (and all future dividends after the 9th) will be $6. What is the stock price today if investors require a 15% annual return?
A. $53.46
B. $98.95
C. $26.54

D 65.15

Dot Image
Report this Question as Inappropriate
Tutorials for this Question
  1. neil2103
    Tutorial # 00043649 Posted By: neil2103 Posted on: 01/29/2015 02:54 PM
    Puchased By: 3
    Tutorial Preview
    The solution of Finance questions...
      Get the Solution
    Attachments
    6_answer.docx (13.31 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    x...i Rating Good-quality and satisfactory content 03/01/2015
  Get the Solution

Great! We have found the solution of this question!

Related Questions and Answers

Whatsapp Lisa