Answer:
Bond's Current Yield 4.39%
Explanation:
The bond's current yield is calculated as below:
Bond's Current Yield = Annual Coupon Payment/Current Bond Price*100
Substituting values in the above formula, we get,
Bond's Current Yield = (100*4.30%)/97.85*100 = 4.39%
B.
Customers will have a variety of flavors to choose from
Answer:
the stock price is $58.23
Explanation:
The computation of the price pay per share today is shown below:
Stock price is
= Current year dividend ÷ (required rate of return - growth rate)
= $11.15 × (1 - 0.06) ÷ (12% - (-6%)
= $10.48 ÷ 18%
= $58.23
Hence, the stock price is $58.23
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
β = 1.45
Explanation:
The beta of the portfolio is defined as an average of the betas (β) of each asset within the portfolio weighted by their respective invested amounts (A):
The beta of the portfolio is 1.45
