Finance Questions
Explore questions in the Finance category that you can ask Spark.E!
Manager of actively managed funds are investment professional who typically beat the market.
True or false. A well-diversified portfolio with a beta of 2.0 is twice as risky as the market portfolio.
True or False. The CAPM implies that if you could find an investment with a negative beta, its expected return would be less than the interest rate.
CHAPTER 6 HW PROB.Your company is estimated to make dividends payments of $2.2 next year, $3.6 the year after, and $4.5 in the year after that. The dividends will then grow at a constant rate of 7% per year. If the discount rate is 8% then what is the current stock price?
Which project is likely to have a higher asset beta. Project C is a first-class airline. Project D is a well-established line of breakfast cereals
CHAPTER 6 HW PROB.ABC Inc. will pay a dividend of $1.32 per share on its common stock at the end of this year. If the expected long-term growth rate for this company is 1.74% and investors require a 4.34% rate of return, what is the price of ABC Inc. stock?
CHAPTER 6 HW PROB.Which of the following statements is correct about a stock currently selling for $50 per share that has 16% expected return and a 10% expected capital appreciation?
CHAPTER 6 HW PROB.In addition to voting, shareholders also have a claim on the firm's assets, after all debts have been paid.
CHAPTER 6 HW PROB.You are considering investing in a firm The dividend on the company's stock has not changed in the past ten years and most likely will not change in the foreseeable future. In this case, the most appropriate stock valuation model would be the _________ model.
CHAPTER 6 HW PROB.The main vote that shareholders have is to elect the Board of Directors
True or False. A stock with a low standard deviation always contributes less to portfolio risk than a stock with a higher standard deviation.
CHAPTER 6 HW PROB.A stock's ______ is found by dividing the stock's annual dividend by its closing price.
CHAPTER 6 HW PROB.A stock will pay no dividends for the next 5 years. Then it will pay a dividend of $9.51 growing at 1.75%. The discount rate is 9.14%. What should be the current stock price?
What do you think Apple's stock will be in three months? If your valuation is based on where the stock is today, you could be exhibiting what irrational behavior?
CHAPTER 6 HW PROB.A stock is expected to pay dividends of $ 18 per share for the foreseeable future. If the appropriate discount rate is 2.7 % then what should be the price of this stock?
CHAPTER 6 HW PROB.Campbell Soup stock currently sells for $70.15 per share and is expected to pay a year-end dividend of $2.75. If Campbell's constant growth rate is 1.79%, calculate the expected rate of return.
Large and active stock markets are not very efficient because they do not react to relevant market news.
CHAPTER 6 HW PROB.Common stock can be valued using the perpetuity formula if the:
CHAPTER 6 HW PROB.A share of preferred stock pays a dividend of $9 and has a discount rate of 4%. What is the price?
A stock will pay a dividend of $ 5.9 per share, which is expected to grow at 3.5 % per period. The discount rate is 13.27%. What should be the current price?