Entries by Grace Wahito

Thor Bank has an issue of preferred stock with $8.00 stated dividend that just sold for $60 per share.

Thor Bank has an issue of preferred stock with $8.00 stated dividend that just sold for $60 per share.  What is the bank’s cost of preferred stock?  (show work.  Hint:  P/=Dividend/Price.  Note: if the dividend is expressed as a percentage, then you will have to calculate the dividend by multiplying by the par value.)   Looking […]

 

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You own a portfolio that has $3,500 invested in Stock A and $4,500 invested in Stock B.

You own a portfolio that has $3,500 invested in Stock A and $4,500 invested in Stock B.  If the expected returns on these stocks are 10% and 16%, respectively, what is the expected return on the portfolio?  (Please show work so I can understand)   Looking for a Similar Assignment? Order now and Get 10% […]

 

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A stock has a beta of 1.45, the expected return on the market is 10%, and the risk-free rate is 2%

A stock has a beta of 1.45, the expected return on the market is 10%, and the risk-free rate is 2%.  What must the expected return on this stock be?  (please show work)   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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Calculate the weighted average

Calculate the weighted average cost: Percent of capital structure:10% Common equity: 60% Debt: 30% Corporate tax rate: 34% Dividend, preferred: $9.00 Dividend, expected common: $3.50 Price, preferred: $102.00 Growth rate: 6% Bond yield: 10% Flotation cost, preferred: $3.20 Price, common: $70.00 Please show work.   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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