1.
award:
2 out of
2 points
You own a portfolio that has $2,900 invested in Stock A and $4,000 invested in Stock B.
Assume the expected returns on these stocks are 8 percent and 14 percent, respectively.
Required:
What is the expected return on the portfo
Chapter 2
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $5.2 million. The
machinery can be sold to the Romulans today for $7.4 million. Klingons current balance sheet
shows net fixed assets of $4.0 million, current liabilitie
The next dividend payment by Mosby, Inc., will be $3.35 per share. The dividends are
anticipated to maintain a 7.50 percent growth rate, forever. Assume the stock currently sells for
$50.30 per share.
Requirement 1:
What is the dividend yield? (Do not inc
1.
award:
0 out of
0 points
Suppose a stock had an initial price of $75 per share, paid a dividend of $3.20 per share during the year, and had an
ending share price of $63.00.
Requirement 1:
Compute the percentage total return.
-11.73%
Requirement 2:
What
1.
Kings of Leon, Inc., has a book value of equity of $66,000. Long-term debt is $59,000. Net
working capital, other than cash, is $22,600. Fixed assets are $92,400 and current liabilities are
$7,600.
Requirement 1:
How much cash does the company have? (D
Ch 4 hw f1361:
For each of the following, compute the future value (Do not include the dollar signs ($).
Round your answers to 2 decimal places (e.g., 32.16):
Present Value
Years
Interest Rate
2,800
8
17%
$
9,832.07 0.1%
9,153
21
9
$
55,913.92 0.1%
96,305
Below are examples of business transactions. Choose the type of financial management decision
that is relevant to each.
Deciding whether to expand a manufacturing plant
Capital budgeting correct
Deciding whether to issue new equity and use the proceeds
to