Questions
What is the value of a common stock if:

What is the value of a common stock if:


a. the firm's earnings and dividends are growing annually at 4 percent, the current dividend is $1.32, and investors require a 8 percent return on investments in common stock?


b. What is the value of this stock if you add risk to the analysis and the firm's beta coefficient is 0.8, the risk-free rate is 1.5 percent, and the return on the market is 8.5 percent?


c. If the price of the stock is $35, what is the rate of return offered by the stock? Should the investor acquire this stock?

In: Finance

Investments A, B, and C all have the following characteristics: A B C Expected Return 10%...

Investments A, B, and C all have the following characteristics:

A B C
Expected Return 10% 10% 10%
Standard Deviation 8% 8% 8%
Skewness 1.5 0.4 -0.8
Excess Kurtosis -0.6 0 1.2

For an investor who is most concerned about not losing principal, the best investment and the worst investment are likely to be, respectively:

A.) A the best and B the worst

B.) B the best and A the worst

C.) B the best and C the worst

D.) A the best and C the worst

In: Finance

Calculate the change in government purchases of goods and services necessary to close the gap. Refer...

Calculate the change in government purchases of goods and services necessary to close the gap. Refer to the following example to fill the blanks in the questions.

Real GDP equals $100 billion, potential output equals $170 billion, and the marginal propensity to consume is 0.8.

Since the multiplier for a change in government purchases of goods and services is _______, an increase in government purchases of $_______ billion will increase real GDP by $70 billion and close the recessionary gap.

4; 15

5; 14

7; 10

2; 35

In: Economics

What’s the future value of the initial $100 deposit after 10 years? We assume current interest...

What’s the future value of the initial $100 deposit after 10 years? We assume current interest rate is = 6%, compounded monthly.

a. $121.0

b. $161.6

c. $181.9

d. $223.4

You want to receive $5,800 per month in retirement. If you can earn 0.8% return per month and you expect to need the income for 30 years, how much do you need to have in your account at retirement?

$585,123

$599,513

$626,783

$683,833

In: Finance

According to a recent study, the number of times a person visits a doctor per year...

According to a recent study, the number of times a person visits a doctor per year follows an approximately normal distribution with a mean of 4.6 visits and a standard deviation of 0.8 visits. A tech company wishes to offer their employees health insurance next year. To find the best health insurance plan, the company randomly selects employees and notes how many times they visited the doctor last year. If the research resulted in a standard error of 0.025 visits, how many employees did they sample?

In: Statistics and Probability

A beam of electrons is incident on a single slit whose width could be varied with...

  1. A beam of electrons is incident on a single slit whose width could be varied with as high precision as we like. Assuming that we would like to resolve 1% difference in momentum, please estimate the slit width that would be necessary to resolve the interference pattern of the electrons if their kinetic energy is (a) 0.02 MeV, (b) 0.8 MeV and 120 MeV?

Hint: one does not need to do a detailed interference pattern analysis here, just use your QM common sense.

In: Physics

A stock has a beta of 1.6 and an expected return of 14 percent. A risk-free...

A stock has a beta of 1.6 and an expected return of 14 percent. A risk-free asset currently earns 4 percent.

a) What is the expected return on a portfolio that is equally invested in the two assets?

b) If a portfolio of the two assets has a beta of 0.8, what are the portfolio weights?

c) If a portfolio of the two assets has an expected return of 10 percent, what is its beta?

d) If all assets in the economy are correctly priced, what is the expected return on the market portfolio?

In: Finance

Kevin and Kira are in a history competition. (i) In each round, every child still in...

Kevin and Kira are in a history competition.

(i) In each round, every child still in the contest faces one question. A child is out as soon as he or she misses one question. The contest will last at least 7 rounds.

(ii) For each question, Kevin's probability and Kira's probability of answering that question correctly are each 0.8; their answers are independent.

Calculate the conditional probability that both Kevin and Kira are out by the start of round 7, given that at least one of them participates in round 3.

In: Statistics and Probability

Absorbance values for five standard solutions of a colored solute were determined at 410 nm with...

Absorbance values for five standard solutions of a colored solute were determined at 410 nm with a 1.00?cm path length, giving the following table of data:

Solute concentration (M) A
0.250 0.175
0.500 0.350
0.750 0.525
1.000 0.700
1.250 0.875


Determine the absorbance values you would expect for solutions with the following concentrations:

0.4 M



0.6 M



0.8 M



1.1 M



Caluclate the average molar absorptivity of the compound: ____ 1/M*cm

In: Chemistry

Net U.S. energy imports have decreased every year since 2016. Last year’s change in net energy...

Net U.S. energy imports have decreased every year since 2016. Last year’s change in net energy trade
(crude oil, natural gas, coal, and petroleum products) in the U.S.—from 3.6 quads of net imports in 2018 to
0.8 quads of net exports in 2019—was the largest change in U.S. energy trade since 1980. How would the
low oil price affect the U.S. crude oil trade (import and export) in 2020? Apply the D-S model.

In: Economics