Question
In: Finance
For four years, you have owned stock in XYZ corp. You bought itin August 2015....
For four years, you have owned stock in XYZ corp. You bought it in August 2015. The price you paid was $20.00 per share. The first year it paid you a dividend of $0.67; the next year, $0.75; the next, $1.00 and then the final year, $1.25. The price for the stock in August of 2016 was $28.00, in August 2017 $24.00, August 2018 $22.00, and finally today it is selling for $31.00.
Date | Close Price | Dividends | Return?? |
Aug 2015 | $20.00 | - | - |
Aug 2016 | $28.00 | $0.67 | 43.35% |
Aug 2017 | $24.00 | $0.75 | 23.75% |
Aug 2018 | $22.00 | $1.00 | 15% |
Aug 2019 | $31.00 | $1.25 | 61.25% |
Use the data above for the first question.
What is geometric average return for your stock over the four years?
You own 100 shares of a $10 stock (ABC corp), 200 shares of a $20 stock (DEF corp), and 300 shares of a $30 stock (GHI corp). If you expect returns for each respective stock to be 20% for ABC, 15% for DEF and 10% for GHI, what is the expected return for your portfolio?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
A) You try to price the options on XYZ Corp. The current stock price of XYZ...
A) You try to price the options on XYZ Corp. The current stock
price of XYZ is $100/share. The risk-free rate is 5%. You project
the stock price of XYZ will either be $90 or $120 in a year. Assume
you can borrow or lend money at the risk-free rate. Use
risk-neutral approach to price the 1-year
call option on XYZ Corp with the strike price of $105.
(Attention: using a wrong approach will cost you all the
credits)
B)...
On 1/1//2015, XYZ leases a machine from Super LeaseCo for four years. At the end of...
On 1/1//2015, XYZ leases a machine from Super LeaseCo for four
years. At the end of the lease term, title passes to XYZ. Payments
of $4,000 are made at the BEGINNING of each year 1/1/2015,
12/31/15, 12/31/16, AND 12/31/17). The machine has a useful life of
6 years, with no salvage value. XYZ uses straight-line
amortization. Lessee interest rates is 6%. Fair value of machine is
$14,692 which is the price that Super LeaseCo. paid for the
machine. Assumption 1...
You are an investor who bought a stock of the XYZ company on 2nd January 2008....
You are an investor who bought a stock of the XYZ company on
2nd January 2008. You are concerned of the significant
downside risk if the stock market tumbles and want to use options
to hedge your exposure.
Date
Strike Price
Bid Price - Call
Ask Price - Call
Bid Price - Put
Ask Price Put
Stock Price
2-Jan-08
90
9.2
9.5
10.7
11
86.62
If XYZ stock price falls to $42.67 in year, what is the
profit/loss of the...
You purchased XYZ stock at the closing price on December 31, 2015, and sold it after...
You purchased XYZ stock at the closing price on December 31,
2015, and sold it after the dividend had been paid at the closing
price on January 26, 2016. Given the following Price and Dividend
data for XYZ, your dividend yield for this period is closest to
______________ and your capital gains rate (yield) for this period
is closest to _______________________.
Date
Price
Divedened
December-31-2015
17.5
jan-26-2016
16.25
0.3
july-29-2016
13.7
0.3
December-30-2016
8.9
a
1.7%; 92.8%
b
1.8%; -7.1%...
You are trying to value the stock of XYZ Corp. Total earningsfor year 1 are...
You are trying to value the stock of XYZ Corp. Total earnings
for year 1 are forecasted to be $115 million. You know that the
company plans on paying out 33% of its earnings in the form of
dividends and 23% in the form of share repurchases each year, and
that all of the growth in future earnings will be through retained
earnings. The company's return on new investment is 15%, its cost
of equity is 12% and it has...
The stock of XYZ Corp. is trading for $100 on the New York Stock Exchange and...
The stock of XYZ Corp. is trading for $100 on the New
York Stock Exchange and $97 on the London Stock Exchange. Assume
that the costs of buying and selling the stock on both exchanges
are negligible.
a. What could you do to make a profit in this situation?
What is this called? (2 pts)
b. As you keep doing what you’re doing to make a profit,
what would you expect to happen to the price on the New York...
Macroeconomic data for the country of XYZ for the years 2014 and 2015 are given as...
Macroeconomic data for the country of XYZ for the years 2014 and
2015 are given as
2014
2015
Output
12,000 tons of carrots
20,000 tons of carrots
Unemployed
100 workers
50 workers
Unemployment rate
5%
2%
Population
4000 people
4400 people
Assume that XYZ produces only carrots.
What is the difference in labour force between 2014 and
2015?
a)
250 workers
b)
400 workers
c)
500 workers
d)
None of the above
Macroeconomic data for the country of XYZ for the years 2014 and 2015 are given as...
Macroeconomic data for the country of XYZ for the years 2014 and
2015 are given as
2014
2015
Output
12,000 tons of carrots
20,000 tons of carrots
Unemployed
100 workers
50 workers
Unemployment rate
5%
2%
Population
4000 people
4400 people
Assume that XYZ produces only carrots.
What is the growth rate of average labour productivity between
2014 and 2015?
(Show your calculation
Question 31 options:
a)
Around 39.31%
b)
Around 19.31%
c)
Around 29.31%
d)
None of the above
You have the following stock price information of firm XYZ. (4pts) Period (t) XYZ Stock Price...
You have the following stock price information of firm XYZ.
(4pts)
Period (t)
XYZ Stock Price per share ($)
0
2.50
1
2.70
2
2.66
3
2.43
4
2.57
5
2.55
6
2.56
7
2.63
8
2.85
9
2.94
10
2.99
a) Calculate the standard deviation for the XYZ stock returns if
t=0 indicates the XYZ’s initial public offering (IPO).
b) Calculate the standard deviation for the XYZ stock returns if
the given periods (from t=0 to t=10) are some...
Question 3 You are trying to value the stock of XYZ Corp. Total earnings for year...
Question 3
You are trying to value the stock of XYZ Corp. Total earnings
for year 1 are forecasted to be $157 million. You know that the
company plans on paying out 11% of its earnings in the form of
dividends and 27% in the form of share repurchases each year, and
that all of the growth in future earnings will be through retained
earnings. The company's return on new investment is 15%, its cost
of equity is 12% and...
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