Finance Questions
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A stock is expected to pay dividends of $ 4.8 per share for the foreseeable future. If the appropriate discount rate is 8.64 % then what should be the price of this stock?
A share of preferred stock sells for $69.09 and has a discount rate of 16.02%. How much is the dividend?
Bond's principal amount is repaid at maturity.
The value of a share of stock should be the present value of all future cash flows payable to shareholders, discounted at a rate that accounts for risk.
A preferred stock's price is $ 35 with an expected return of 24.87 %. What is the expected dividend amount?
In straight-line voting, each candidate for the board of directors is elected by a majority vote. Therefore, any voting block which controls 51% of the votes will be able to elect all board members.Straight-line voting tends to favor large blockholders at the expense of small shareholders.
Your company is estimated to make dividends payments of $2.8 next year, $3.9 the year after, and $4.8 in the year after that. The dividends will then grow at a constant rate of 6% per year. If the discount rate is 10% then what is the current stock price?
CHAPTER 5 HW PROB.What is the current yield of a bond with a 6% coupon, four years until maturity, and a price of $1,062.38?
Suppose a share of preferred stock sells for $40.61 and pays a dividend of $6.33 each period. What is the discount rate?
The yield is what we would consider to be the interest rate if we take the price as the present value, the coupon payments as the payments, and the face value as the future value.
The efficient-market hypothesis (EMH) is a theory describing the behavior of an assumed "perfect" market in which securities are in equilibrium, security prices fully reflect all available information and react swiftly to new information, and yet stocks are not fully and fairly priced, so investors will not waste time looking for mispriced securities
Assume that there is a bond on the market priced at $850 and that the bond comes with a face value of $1,000.The coupon rate for the bond is 15% and the bond will reach maturity in 7 years.Calculate bond's YTM?
CHAPTER 5 HW PROB.How much should you pay for a $1,000 bond with 10% coupon, annual payments, and five years to maturity if the interest rate is 12%?
CHAPTER 5 HW PROB.Cornerstone Industries has a bond outstanding that has a 5% coupon rate, $1,000 face value, and a market price of $897.34. If the bond matures in 5 years and interest is paid on a semi-annual basis, what is the yield to maturity on the bond?
A share of preferred stock pays a dividend of $1.35 and has a discount rate of 16.4%. What is the price?
Loser Inc. will pay a dividend of $3.64 per share on its common stock at the end of this year. If the expected long-term growth rate for this company is -4.67% and investors require a 6.24% rate of return, what is the price of ABC Inc. stock?
municipal bonds or "munis" are risk-free
CHAPTER 5 HW PROB.The discount rate that makes the present value of a bond's payments equal to its price is termed the:
CHAPTER 5 HW PROB.Which of the following statements best describes the real interest rate?
CHAPTER 5 HW PROB. Which of the following is correct for a bond priced at $1,100 that has ten years remaining until maturity, and a 10% coupon, with semiannual payments?