You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $1.25 in dividends and $35 from the sale of the share at the end of the year. The maximum price you would pay for a share today is if you wanted .to earn a 12% return إختر أحد الخيارات $32.37 A O $38.47 B $41.32 C $31.25 D
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- You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $1.25 in dividends and $35 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 13% return. Multiple Choice $30.97 $32.08 $31.54 $41.67You are planning to purchase the stock of Martie Inc. and you expect it to pay a dividend of $3 in 1year, $4.25 in 2 years, and $6.00 in 3 years. You expect to sell the stock for $100 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today?You plan to buy a common stock and hold if tor one year. You expect to receive both ₱150 and ₱260 form the sale of the stock at the end of the year. How much will you pay for the stock, if you want to a. Have a return of 8% b. A return of 10% c. A return of 15%
- Assume that you sell $100,000 of a 10 percent shareholding with a payment of the future one year from now is $1.5 million. A. Explain what is meant by implied return for the owner of 10 percent? (5 points) B. What is the present value of the total $1.5 million, using the implied return of about part A? (5 points) C. What is 10 percent of the value specified in Part B? (5 points) D. Which is more profitable : You grow $100,000 at 50 percent to $150,000, provided that 10 percent is off $1.5 million, or a $1.5 million discount at 50 percent to earn $1 million provided that $100,000 is 10 percent ofcurrent value? (10 points)You buy a stock from which you expect to receive an annual dividend of $3.00 for each of the seven years that you plan on holding it. At the end of the year seven you expect to be able to sell the stock for $75. What is the most that you should be willing to pay today for a share of this company if you want to earn a return of at least 8%? O A. $79.37 O B. $59.38 OC. $68.06 O D. S88.89An investor who wishes to purchase the stock belonging to Entity A to hold for two years will receive a dividend of $ 0.7 per share for the first year, $ 1.3 for the second year from this investment, and at the end of the second He estimates that it can be sold for $ 12.0 USD. What is the real value of the stock if the minimum rate of return expected by the investor is 20%? a) 15b) 2.81c) 9.81d) 21.81e) 5.81 ============= If the discount rate is 9%, what is the present value of 5375 USD received at the end of each year for 12 years?a) 25000,375b) 10000,5c) 12450,5d) 15500,375e) 38490,375 ============== The price / earnings ratio of the beta company stock has been calculated as 7.4. If the expected earnings per share of this stock for the next year is 2.5 USD, what is the real value of the stock? If the stock of this company is currently trading at 25 USD, can the relevant stock be purchased? a) 18.5 and should not be boughtb) 36 and must be purchasedc) 45 and must be purchased d) 18.5…
- Suppose we purchase a share of IBM for $120 and hold for 1 year. We receive a dividend of $4 and then sell the share for $130. What is the holding period return? 15.00% 9.50% 11.67% 6.95%Assume that your broker offers to sell you some shares of Gada Business Center common stock that paid a dividend of $2 at the end of last year. You expect the dividend to grow at the rate of 5 percent per year for the next 3 years, and, if you buy the stock, you plan to hold it for 3 years and then sell it If you plan to buy the stock, hold it for 3 years, and then sell it for $34.73, what is the most you should pay for it today?After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $29.52 per share. Assume the price goes up to $36.77 per share over the next 12 months and you receive a qualified dividend of $0.69 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return different if you sell the stock? In both cases assume you are in the 25 percent federal marginal tax bracket and 15 percent long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income. Your total rate of return on your KSU Corporation investment is % (Round to two decimal places.) Assuming you continue to hold the stock, your after-tax rate of return is%. (Round to two decimal places) Your realized after-tax rate of return if you sell the stock is%.…
- After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $26.71 per share. Assume the price goes up to $32.29 per share over the next 12 months and you receive a qualified dividend of $0.46 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return different if you sell the stock? In both cases assume you are in the 25 percent federal marginal tax bracket and 15 percent long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income. ... Your total rate of return on your KSU Corporation investment is 22.61 %. (Round to two decimal places) Assuming you continue to hold the stock, your after-tax rate of return is %. (Round to two decimal places.)As a prospective share holder, you are offered a project that will pay you an income of #8000 in 5years time at 13% rate of discount. What is the present value your future dividend?In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. What is your capital gain on this trade?
