Question

In: Finance

Young Corp. Mature Corp. Share price Share price Dividend per share 31-Dec-05 32.56 78.50 0.00 31-Dec-06...

Young Corp. Mature Corp.
Share price Share price Dividend per share
31-Dec-05 32.56 78.50 0.00
31-Dec-06 34.50 82.50 0.00
31-Dec-07 38.98 84.50 1.00
31-Dec-08 44.50 81.60 0.00
31-Dec-09 40.20 79.60 1.50
31-Dec-10 39.50 80.96 1.50
31-Dec-11 38.45 82.65 0.00
31-Dec-12 37.50 83.69 2.00
31-Dec-13 43.58 82.79 2.00
31-Dec-14 50.30 81.97 0.00
Part A. Compute returns for both companies
Young Corp. Mature Corp.
31-Dec-06
31-Dec-07
31-Dec-08
31-Dec-09
31-Dec-10
31-Dec-11
31-Dec-12
31-Dec-13
31-Dec-14
Part B. Calculate the following statistics
Average return
Variance
Sigma
Covariance
Correlation
Part C. Interpret the economic meaning of correlation

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Mature Conglomerate Corporation (MCC) just paid a dividend of $1.35 per share, and that dividend is...
Mature Conglomerate Corporation (MCC) just paid a dividend of $1.35 per share, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the required return on the market is 12.50%, and the risk-free rate is 4.00%. What is the intrinsic value for MCC’s stock? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer...
Tesla Inc. Consolidated Balance Sheets (in thousands, except per share data) 31 Dec '17 31 Dec...
Tesla Inc. Consolidated Balance Sheets (in thousands, except per share data) 31 Dec '17 31 Dec '16 31 Dec '15 31 Dec '14 31 Dec '13 31 Dec '12 31 Dec '11 Total assets 28,655 22,664 8,068 5,831 2,417 1,114 713 Total current assets 6,571 6,260 2,782 3,180 1,266 525 373     Cash and cash equivalents 3,368 3,393 1,197 1,906 846 202 255     Short-term marketable securities -- -- -- -- -- -- 25     Restricted cash and marketable securities...
Tesla Inc. Consolidated Balance Sheets (in thousands, except per share data) 31 Dec '17 31 Dec...
Tesla Inc. Consolidated Balance Sheets (in thousands, except per share data) 31 Dec '17 31 Dec '16 31 Dec '15 31 Dec '14 31 Dec '13 31 Dec '12 31 Dec '11 Total assets 28,655 22,664 8,068 5,831 2,417 1,114 713 Total current assets 6,571 6,260 2,782 3,180 1,266 525 373     Cash and cash equivalents 3,368 3,393 1,197 1,906 846 202 255     Short-term marketable securities -- -- -- -- -- -- 25     Restricted cash and marketable securities...
The Portheus Corp. currently pays a dividend of $3.00 per share. This dividend is expected to...
The Portheus Corp. currently pays a dividend of $3.00 per share. This dividend is expected to grow at a rate of 14% per year for the next 5 years and at a constant rate of 4% per year thereafter. If Portheus’ stock has a required return of 8% per year, what should the current price of the stock be?
XYZ Corp. will pay a $2 per share dividend in two months. Its stock price currently...
XYZ Corp. will pay a $2 per share dividend in two months. Its stock price currently is $68 per share. A call option on XYZ has an exercise price of $62 and 3-month time to expiration. The risk-free interest rate is 0.9% per month, and the stock’s volatility (standard deviation) = 10% per month. Find the Black-Scholes value of the American call option. (Hint: Try defining one “period” as a month, rather than as a year, and think about the...
XYZ Corp. will pay a $2 per share dividend in two months. Its stock price currently...
XYZ Corp. will pay a $2 per share dividend in two months. Its stock price currently is $90 per share. A call option on XYZ has an exercise price of $85 and 3-month time to expiration. The risk-free interest rate is 0.6% per month, and the stock’s volatility (standard deviation) = 24% per month. Find the Black-Scholes value of the option. (Hint: Try defining one “period” as a month, rather than as a year, and think about the net-of-dividend value...
For the Dinera Corp. in 2014: Balance Sheet : Dec 31, 2014 | Dec 31, 2013...
For the Dinera Corp. in 2014: Balance Sheet : Dec 31, 2014 | Dec 31, 2013 Accounts Payable : 87,000 | 82,600 Taxes Payable : 2,500 | 15,000 Short-Term Debt : 20,000 | 20,000 Long-Term Debt : 100,000 | 100,000 Common stock ($0.10 par) : 520 | 500 Additional paid in capital : 32,500 | 40,000 Retained Earnings : 460,430 | answer Treasury Stock, (2000, 1600 shares) :  (15,000)         | (10,000) ◊―――――――――――――――――――――――――――――◊ Income Statement : 2014 Net sales : 402,800 Cost...
ABZ Corp. just paid a dividend of $1.00 per share. The dividend is expected to grow...
ABZ Corp. just paid a dividend of $1.00 per share. The dividend is expected to grow 6% per year in perpetuity.  The stock's beta is 0.85.  The risk-free rate is 3%, and the market risk premium is 7%. The current stock price is $37 per share.  Assume that one year from now the stock will be correctly valued. What are the dividend yield, capital gain yield and expected return for the coming year? Draw the Security Market Line and plot the stock on...
Ebrahim corp pays an annual dividend of R3.50 per ordinary share. The dividend is expected to...
Ebrahim corp pays an annual dividend of R3.50 per ordinary share. The dividend is expected to grow at an annual rate of 8% for the Next three years followed by 10% in the fourth year before it grows At a constant rate of 5% from the fifth year of infinity. The company’s Required return on similar investments is 15%. What is the value of each ordinary share in the company
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1 per share,...
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1 per share, and there are 15,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below.                       Assets Liabilities and Equity Cash $250,000      Equity $1,000,000      Fixed assets 750,000            Suppose that Payout changes its mind and decides to issue a 1% stock dividend instead of either issuing the cash dividend or repurchasing 1% of the outstanding stock. How would this...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT