Homework Answers
| 1 | |||||||
| Stock | Price | Number of Shares | Total Value of Investment (Price*No. of shares) | Weight Average (%) | |||
| A | $10 | 35 | 350 | 18.08 | |||
| B | $17 | 50 | 850 | 43.90 | |||
| C | $12 | 28 | 336 | 17.36 | |||
| D | $20 | 20 | 400 | 20.66 | |||
| Total | 133 | 1936 | |||||
| Weight Average Formula= Stock Value of Investment/Total Value of Investment * 100 | |||||||
| Company C's weight average 17.36% so answer is (a) | |||||||
| 2 | Company B's market Capitalization | ||||||
| $17*50=$850 | |||||||
| Answer is C - $850 | |||||||
| 3 | Answer is e- Pay dividends that increase at a steady rate | ||||||
| 4 Answer is C- | Capital gain or loss plus and dividend income | ||||||
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23 Me bo t e questions (22) Numerose 512 22) You are given the data for...
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Questions 22 and 23 are based on the following: is a shareholder in X co., an S corporation. In 20X4, A's share of X co.'s net operating loss is $20,000. On 12/31/X4 A has a basis in his X co, stock of $15,000 before accounting for the net operating loss. A also has a loan due from X co. for which he has a $7,000 basis. In 20X3, A'S Share of X co's income is $10,000. 22. In 20X4, A...
Need help on these 4 multiple choice questions please! 21. You purchased 100 shares of IBM...
Need help on these 4 multiple choice questions
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21. Which of the following is not a true statement regarding stock options? a. They may...
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Questions 22 and 23 are based on the following: is a shareholder in X co., an S corporation. In 20X4, A's share of X co.'s net operating loss is $20,000. On 12/31/X4 A has a basis in his X co, stock of $15,000 before accounting for the net operating loss. A also has a loan due from X co. for which he has a $7,000 basis. In 20X3, A'S Share of X co's income is $10,000. 22. In 20X4, A...
Need help on these 4 multiple choice questions
please!
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21. Which of the following is not a true statement regarding stock options? a. They may cause dilution of earnings per share b. The exercise of stock options could result in either gains or losses c. They involve a compensation expense d. Exercise improves the short-term liquidity and debt position of the issuing firm e. They generally allow the purchase of common stock at favorable terms 22. The pricelearnings ratio: a measures the past earning ability of the firm. b....
7. Which of the following is an assumption of the dividend growth model? a. The current dividend divided by 1+g equals the next dividend. b. G must be greater than R. c. The stock must pay dividends. d. Both price and dividend will grow at Rindefinitely e. The price and dividend will increase gradually over the years. 8. A stock with a dividend yield of 5% and a total yield of 11% a. Must be growing at 4%. b. Must...
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Practice Questions (Chapter 8 (Note: In order to provide some incentives, your scores will be recorded and the top 20% scorers of practice questions at the end of the semester will receive some extra credit.) 1. Aggregate consumption will certainly increase if a) income increases and wealth decreases. b) income increases and interest rates decrease. c) interest rates increase and household wealth decreases. d) interest rates increase and consumer confidence about the future strengthens. 2. The MPC is a) the...
23) 23) The interest earned on both the initial rinnal and the interest reinvested from prior periods is called: A) dual interest B) free interest. C) interest on interest D) simple interest. E) compound interest. 24) 24) Which one of the following statements is correct? A) All stocks can be valued using the dividend discount models. B) Stocks can only be assigned one dividend growth rate. C) Preferred stocks generally have variable growth rates. D) Dividend growth rates must be...
questions 9-12 please
9. If a firm increases its plowback ratio, this will probably result in ___ P/E ratio A. A higher B. A lower C. An unchanged D. Insufficient information E. None of the above 10. The price-to-sales ratio is probably most useful for firms in which phase of the industry life cycle? A. Start-up phase B. Consolidation C. Maturity D. Relative decline E. None of the above 11. A firm cuts its dividend payout ratio. As a result,...
23) 23) The interest earned on both the initial principal and the interest reinvested from prior periods is called: A) dual interest B) free interest C) interest on interest. D) simple interest. E) compound interest. 24) 24) Which one of the following statements is correct? A) All stocks can be valued using the dividend discount models. B) Stocks can only be assigned one dividend growth rate. C) Preferred stocks generally have variable growth rates. D) Dividend growth rates must be...
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