Matching Next year's dividend divided by the stock price A general term for the interest rate...

Matching

Next year's dividend divided by the stock price
A general term for the interest rate used to find the PV of cash flows
The principal amount on a bond, repaid at maturity, usually $1,000
Annual interest paid divided by the face value on a bond.
Market discount rate used to find a bond's price. Changes with market conditions
Measures bond interest rates at different maturity dates
Document that governs the legal obligations on a bond
The return from the growth in the stock price over time
Price at which a dealer is willing to buy a bond or stock.
Bond lacking collateral
Additional yield to account for the credit quality of bond

A.	Indenture
B.	Dividend yield
C.	Yield-to-maturity (YTM)
D.	Bid price
E.	Dividend coupon
F.	Debenture
G.	Default risk premium

H.	Face Value
I.	Coupon rate
J.	Capital gains yield
K.	Ask price
L.	Discount rate
M.	Yield curve
N.	Interest rate schedule

Solutions

Expert Solution

Matching	ANSWERS:
Next year's dividend divided by the stock price	B.	Dividend yield
A general term for the interest rate used to find the PV of cash flows	L.	Discount rate
The principal amount on a bond, repaid at maturity, usually $1,000	H.	Face Value
Annual interest paid divided by the face value on a bond.	I.	Coupon rate
Market discount rate used to find a bond's price. Changes with market conditions	C.	Yield-to-maturity (YTM)
Measures bond interest rates at different maturity dates	M.	Yield curve
Document that governs the legal obligations on a bond	A.	Indenture
The return from the growth in the stock price over time	J.	Capital gains yield
Price at which a dealer is willing to buy a bond or stock.	D.	Bid price
Bond lacking collateral -----------------no close matching		Higher interest rates due to lack of collateral, to recover , in the event of default
Additional yield to account for the credit quality of bond	G.	Default risk premium

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount?

What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount?Group of answer choicesCapital gain modelDividend growth modelPresent value modelEquity pricing modelStock pricing model

Lumber Corp's common stock trades at a price of $40 per share. Last year's dividend was...

Lumber Corp's common stock trades at a price of $40 per share. Last year's dividend was $1.6 per share and is expected to grow by 5% per year. Flotation costs for common stock have been estimated at 6%. The company's preferred stock is selling at $50 and has an annual dividend of $4. Lumber Corp. has bonds outstanding with an average coupon rate of 12% and a yield to maturity of 9%. The firm's optimum capital structure is 45% equity,...

If the price for Apple stock is $44 today, and the dividend next period is $3.50...

If the price for Apple stock is $44 today, and the dividend next period is $3.50 and the price next period is expected to be $36, what is the capital gains yield? A) 18.182% B) - 18.182% C) 7.954% D) 22.22% E) - 10.228%

Find the price for a stock given that the next dividend is $2.38 per share, the...

Find the price for a stock given that the next dividend is $2.38 per share, the required return is 9.6%, and the growth rate in dividends is 1.3% per year.

The current price of a non-dividend-paying stock is $50. The risk-free interest rate is 1%. Over...

The current price of a non-dividend-paying stock is $50. The risk-free interest rate is 1%. Over the next year, it is expected to rise to $52 or fall to $47. An investor buys a European put option with a strike price of $53. What is the value of the option? Group of answer choices: A: $0.93 B: $1.93 C: $1.95 D: $2.47

A stock sells for $40. The next dividend will be $4 per share. If the rate...

A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15% and the company reinvests 60% of earnings in the firm, what is the expected rate of return on the stock?

A company has just paid its first dividend of $3.94. Next year's dividend is forecast to...

A company has just paid its first dividend of $3.94. Next year's dividend is forecast to grow by 9 percent, followed by another 9 percent growth in year two. From year 3 onwards dividends are expected to grow by 3.2 percent per annum, indefinetely. Investors require a rate of 14 percent p.a for investments of this type. The current price of the share is (round to nearest cent). a.$41.79, b.$38.19, c.$22.13, d.$21.84

A company has just paid its first dividend of $4.01. Next year's dividend is forecast to...

A company has just paid its first dividend of $4.01. Next year's dividend is forecast to grow by 10 percent, followed by another 10 per cent growth in year two. From year three onwards dividends are expected to grow by 3.3 percent per annum, indefinitely. Investors require a rate of return of 18 percent p.a. for investments of this type. The current price of the share is (round to nearest cent)

Information about three securities appears next. Beginning-of-Year Price End-of-Year Price Interest/Dividend Paid Stock 1 $ 43.10...

Information about three securities appears next. Beginning-of-Year Price End-of-Year Price Interest/Dividend Paid Stock 1 $ 43.10 $ 47.35 $ 2.10 Stock 2 $ 1.85 $ 1.99 $ 0 Bond 1 $ 1,080 $ 1,108 $ 47.00 a. Assuming interest and d and dividends are paid annually, calculate the annual holding period return on each security. (Round your answers to 1 decimal place.) Annual Holding Period Return Stock 1 % Stock 2 % Bond 1 %

The dividend yield on a stock option is similar to the foreign interest rate on a...

The dividend yield on a stock option is similar to the foreign interest rate on a foreign currency option. True False

Subjects