Answer:
1. Current bonds price = $81.86.
2. Yield to maturity = 22.16%.
3. 3. Expected Return = 7.5%.
Explanation:
Required Rate = Rf + beta*MRP
= 5% + 0.25*(15% - 5%)
= 5% +0.25*10%
= 5% + 2.5% = 7.5%
Required Rate = 7.5%
Expected Future Value = 70% x $100 + 30% x $60
= (0.7*$100) + (0.3*$60)
= $(70+18) = $88
Expected Future Value = $88
1. Current bonds price = 88/1.075 = $81.86
2. Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 = 22.159785% = 22.16%
3. Expected Return = 7.5%
D because if your employees don't know about anything then you will have a sloppy business
Answer:
how do you want the answer to be
Explanation:
???
After the dividend, the firm's:
a. book value per share will be $6.31.
b. price-earnings ratio will be 13.88.
c. shareholder value per share will be $18.60.
d. stock price will be $19.00.
e. earnings per share will be $.94.
The answer is : b
We calculate the ex-dividend price of a share on the day dividend is paid as follows:
Ex-dividend Price = Share price before dividend - dividend paid per share
Ex-dividend price = $18.6 ($19 - $0.40)
We can use this ex-dividend price to calculate the company's P/E ratio after dividend.
P/E = $18.6/$1.34 = 13.88059
