“Week One Homework Assignment Please provide the work below in the spaces
provided. You may adjust the space as necessary, but the original question must
be above the answer and all work must be shown.
1-5: The rate of return on Cherry Jalopies,
Inc., stock over the last five years was 17%, 11%, -2%, 3%, and 14%. Over the
same period, the return on Straw Construction Companys stock was 16%, 18%,
-6%, 1%, and 22%. What was the arithmetic average return on each stock over
this period?
1-6: Using the information from the
previous problem, calculate the variances and the standard deviations for
Cherry Jalopies, Inc. and Straw Construction Company.
1-7: A particular stock has a dividend
yield of 1.3%. Last year, the stock price fell from $56 to $49. What was the
return for the year?
2-5: You have $22,000 and decide to invest
on margin. If the initial margin requirement is 55%, what is the maximum dollar
purchase you can make?
2-6: You buy 400 shares of stock at a price
of $55 and an initial margin of 60%. If the maintenance margin is 30%, at what
price will you receive a margin call?
2-10: You purchased a stock at the end of
the prior year at a price of $81. At the end of this year the stock pays a
dividend of $1.80 and you sell the stock for $97. What is your return for the
year? Now suppose that dividends are taxed at 15% and long-term capital gains
(over 11 months) are taxed at 30%. What is your after-tax return for the year?
3-2: You found the following stock quote
for DRK Enterprises, Inc. at your favorite web site. You also found that the
stock paid an annual dividend of $0.75, which resulted in a dividend yield of 1.3%.
Assuming that the company has 95 million shares of stock outstanding and a PE
ratio of 16, what was the net income for the most recent four quarters?
DAILY
YTD 52 WEEK
Company Symbol Volume Close Chg
%Chg %Chg High Low
%Chg
DRK Enterprises DRK 18,649,130 ? 0.26
-0.39% 8.73% 78.19
51.74 27.4%
3-3: You find a stock selling for $69.80
that has a dividend yield of 2.8%. What was the last quarterly dividend paid?
3-4: In the previous problem, if the
company has a PE ratio of 21.5, what is the earnings per share (EPS) for the
company?
3-5: You purchase 3,000 bonds with a par
value of $1,000 for $980 each. The bonds have a coupon rate of 7.2% paid
semiannually, and mature in 10 years. How much will you receive on the next
coupon date? How much will you receive when the bonds mature?
Week One Homework AssignmentPlease provide the work below in the spaces
provided. You may adjust the space as necessary, but the original question must
be above the answer and all work must be shown.1-5: The rate of return on Cherry Jalopies,
Inc., stock over the last five years was 17%, 11%, -2%, 3%, and 14%. Over the
same period, the return on Straw Construction Companys stock was 16%, 18%,
-6%, 1%, and 22%. What was the arithmetic average return on each stock over
this period?1-6: Using the information from the
previous problem, calculate the variances and the standard deviations for
Cherry Jalopies, Inc. and Straw Construction Company.1-7: A particular stock has a dividend
yield of 1.3%. Last year, the stock price fell from $56 to $49. What was the
return for the year?2-5: You have $22,000 and decide to invest
on margin. If the initial margin requirement is 55%, what is the maximum dollar
purchase you can make?2-6: You buy 400 shares of stock at a price
of $55 and an initial margin of 60%. If the maintenance margin is 30%, at what
price will you receive a margin call?2-10: You purchased a stock at the end of
the prior year at a price of $81. At the end of this year the stock pays a
dividend of $1.80 and you sell the stock for $97. What is your return for the
year? Now suppose that dividends are taxed at 15% and long-term capital gains
(over 11 months) are taxed at 30%. What is your after-tax return for the year?3-2: You found the following stock quote
for DRK Enterprises, Inc. at your favorite web site. You also found that the
stock paid an annual dividend of $0.75, which resulted in a dividend yield of 1.3%.
Assuming that the company has 95 million shares of stock outstanding and a PE
ratio of 16, what was the net income for the most recent four quarters?
DAILY
YTD 52 WEEKCompany Symbol Volume Close Chg
%Chg %Chg High Low
%ChgDRK Enterprises DRK 18,649,130 ? 0.26
-0.39% 8.73% 78.19
51.74 27.4%3-3: You find a stock selling for $69.80
that has a dividend yield of 2.8%. What was the last quarterly dividend paid?3-4: In the previous problem, if the
company has a PE ratio of 21.5, what is the earnings per share (EPS) for the
company?3-5: You purchase 3,000 bonds with a par
value of $1,000 for $980 each. The bonds have a coupon rate of 7.2% paid
semiannually, and mature in 10 years. How much will you receive on the next
coupon date? How much will you receive when the bonds mature?”



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