HW#4 Assigned on Friday, November 16, 2012 / Due on Thursday, November 29, 2012 Please turn in a hard-copy of your homework to the class. Show all your work to receive full credit for each question.

1. Suppose a stock had an initial price of $91 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $102. Compute the percentage total return.
What was the dividend yield? The capital gains yield?

2. Suppose you bought a 7 percent coupon bond one year ago for $1,040. The bond sells for $1,070 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. What was your total nominal rate of return on this investment over the past year? c. If the inflation rate last year was 4 percent, what was your total real rate of return on this investment? (Hint: use the Fisher equation)

3. Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.

4. You bought one of Great White Shark Repellant Co.'s 8 percent coupon bonds one year ago for $1,030. These bonds make annual payments and mature six years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 percent. If the inflation rate was 4.2 percent over the past year, what was your total real return on investment? (Hint: calculate the current bond price and then compute the nominal return)

5. Consider the following information:

a. Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation?

6. Asset W has an expected return of 15 percent and a beta of 1.25. If the risk-free rate is 5 percent, complete the following table for portfolios of Asset W and a risk-free asset. Illustrate the relationship between portfolio expected return and portfolio beta by...

...at the end of this year (i.e., D (1) = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, r(s), is 15%. What is the value per share of Boehm’s stock?
1.50 / (0.15 – 0.07) = $18.75
7-4 Preferred Stock Valuation
Nick’s Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock’s required rate of return?
$5 /...

...FIN 515 WEEK 4HOMEWORK ASSIGNMENT
(7–2)
Constant Growth Valuation
Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D1 = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the value per share of Boehm’s stock?
For this problem we can use the formula from the book P=d1(R-G) to find the price. We just need to plug in the...

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MAT 540 Week 4Homework
Chapter 15 problems
2. The manager of the Carpet City outlet needs to make an accurate forecast of the demand for SoftShag carpet (its biggest seller).If the manager does not order enough carpet from the carpet mill,customers will buy their carpet from one of Carpet City’s many competitors. The manager has collected the following demand data for the past 8 months:
Month Demand for Soft Shag Carpet (1,000 yd.)
1 8...

...utilize development and musical accompaniment tools employ today. Second, since systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from sanatorium and complexity.Â (Ch 3, p. 50)| | | Â | Points Received:| 4 of 5| Â | Comments:| First, data flow diagrams and flowcharts are the two most frequently used development and documentation tools used today. Second, since systems development is extremely complex, DFDs and flowcharts are tools...

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A device that acts as a connection point between computers and that can filter and forward data to a specified destination is called a
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FIN 534 Financial Management Week 4Homework Set 2
Assume that you are nearing graduation and have applied for a job with a local...

...Donald Measel
EMSA 1215
Vocab HW 4 11/3/12
Afterload - Tension or stress developed in the wall of the left ventricle during ejection.
Decomensated Shock – When the body compnesatory mechanisms become unable to respond to continuing blood loss.
Preload – The initial streching of the cardiac myocytes to the greatest demand under variable demand.
Anaphylaxis – life thretaning allergic reaction that can be fatal within minutes if the...

...Perhaps, computer driven may be an option for a new cash drawer system.
3) Having the telephone to verify all credit card transactions seems contradictory to an efficient system. Having the initial system to accept credit cards should be enough.
4) Microcomputers are meant to tackle many of the payment processing needs for a retail. For this reason, Lilly Li Apparel should have multiple computers to handle the multiple duties being requested. This would leave the...

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