Ishiguro Transcontinental paid a dividend of $4.15 last year and the company anticipates this will grow at 3.70% for the foreseeable future. The appropriate discount rate (expect return) for the stock is 12.40%, Ishiguro's stock price is closest to:
| A. |
$34.71. |
|
| B. |
$49.47. |
|
| C. |
$47.70. |
In: Finance
For the coming year you have determined that the following possibilities are most likely for stock A:
|
Economic State |
Probability |
Return |
|
Good |
0.60 |
12 |
|
Bad |
0.40 |
-2 |
What is the expected return for stock A?
In: Finance
a. What is the monthly payment on a 15-year fixed-rate mortgage if the original balance is $235,000 and the rate is 4.9 percent?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Consider a 20-year, $95,000 mortgage with an interest rate of 5.60 percent. After seven years, the borrower (the mortgage issuer) pays it off. How much will the lender receive?
c. A homeowner takes out a $347,000, 30-year fixed-rate mortgage at a rate of 5.55 percent. What are the monthly mortgage payments?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
In: Finance
How much is the price of a perpetuity paying $1000 per year, if the discount rate is 8.0% and its first payment is in 3 years?
In: Finance
In: Finance
If you expect the yield curve to invert next year, with spot rates for maturities of 10-years and above falling and spot rates for maturities less than 10-years rising. Given your forecast, explain which of bond Bond A or Bond B you would recommend for a long position over the upcoming year: Bond A -discount bond with a duration of 12-years and YTM of 5%; Bond B -coupon rate of 10%, a duration of 12-years, and a YTM of 5%.
In: Finance
Assume that you are considering the purchase of a 14-year, noncallable bond with an annual coupon rate of 8.4%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 7.2% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? To calculate the maximum price you would pay for this bond, this problem requires solving for:
1. Group of answer choices :
Payment (in dollars)
Present Value (in dollars)
Future Value (in dollars)
The Par Value (in dollars)
2. Once calculated, the annual payment must be:
Group of answer choices
Multiplied by 2
Divided by 3
Divided by 2
Multiplied by 3
3. Ravenstar Corporation's bonds make an annual coupon interest payment of 4.60%. The bonds have a par value of $1,000, a current price of $880, and mature in 16 years. What is the yield to maturity on these bonds?
The annual payment will be calculated as:
Group of answer choices
Coupon rate x current price
Current rate x current price
Coupon rate x par value
Coupon rate/par value
In: Finance
An investor buys a property for $687,000 with a 25-year mortgage and monthly payments at 6.3% APR. After 18 months the investor resells the property for $749,484. How much cash will the investor have made from the sale, once the mortgage is paid off?
In: Finance
In: Finance
In: Finance