Question

Just Answers

Need Asap

Question 31

Not yet answered

Marked out of 1.00

Not flaggedFlag question

Question text

The Bermuda Triangle Store pays a constant dividend. Last year, the dividend yield was 5.4 percent when the stock was selling for $15 a share. What must the stock price be today if the market currently requires a 3.8 percent dividend yield on this stock?

Select one:

a. $21.32

b. $12.30

c. $11.59

d. $19.22

e. $22.48

Question 32

Not yet answered

Marked out of 1.00

Not flaggedFlag question

Question text

A bond has an average return of 6.3 percent and a standard deviation of 3.8 percent. What range of returns would you expect to see 68 percent of the time on this security?

Select one:

a. -1.30 percent to 13.9 percent

b. -1.30 percent to 10.1 percent

c. 2.5 percent to 7.8 percent

d. 2.5 percent to 10.1 percent

e. 2.5 percent t0 13.9 percent

Question 33

Not yet answered

Marked out of 1.00

Not flaggedFlag question

Question text

A stock has yielded returns of 6 percent, 11 percent, 14 percent, and -2 percent over the past four years, respectively. What is the standard deviation of these returns?

Select one:

a. 5.52 percent

b. 5.86 percent

c. 6.05 percent

d. 6.47 percent

e. 6.99 percent

Question 34

Not yet answered

Marked out of 1.00

Not flaggedFlag question

Question text

You expect the inflation rate to be 3.8 percent and the U.S. Treasury bill yield to be 3.9 percent for the next year. The risk premium on small-company stocks is 12.6 percent. What nominal rate of return do you expect to earn on small-company stocks next year?

Select one:

a. 15.5 percent

b. 16.5 percent

c. 16.8 percent

d. 9.2 percent

e. 8.8 percent

Question 35

Not yet answered

Marked out of 1.00

Not flaggedFlag question

Question text

You purchased a zero coupon bond one year ago for $291.22. The market interest rate is now 8.75 percent. If the bond had 16 years to maturity when you originally purchased it, what was your total return for the past year if the face value of the bond is $1,000?

Select one:

a. -4.97 percent

b. -2.18 percent

c. 1.34 percent

d. 2.65 percent

e. 2.90 percent

Answer 1

Q31 Last Year Dividend Last year Price* Dividend Yield = 15*5.4% = 0.81 Current Year Dividend Last Year Dividenda 0.81 Current Year Share Price = Dividend/Dividend Yiled % 0.81/0.038 = $ 21.32 Answer A