Questions from General Investment

Q: In Problem 3, if the company has a P/E

In Problem 3, if the company has a P/E ratio of 21.5, what is the earnings per share (EPS) for the company? Data from Problem 3: You find a stock selling for $74.20 that has a dividend yield of 3.4...

Q: In Problem 1, what is the capital gains yield? The

In Problem 1, what is the capital gains yield? The dividend yield? What is the total rate of return on the investment? Problem 1: Suppose you bought 100 shares of stock at an initial price of $37 pe...

Q: If the market risk premium decreases by 1 percent while the risk

If the market risk premium decreases by 1 percent while the risk-free rate remains the same, the security market line: a. Becomes steeper. b. Becomes flatter. c. Parallel shifts downward.

Q: You purchase 3,000 bonds with a par value of $

You purchase 3,000 bonds with a par value of $1,000 for $980 each. The bonds have a coupon rate of 7.2 percent paid semiannually and mature in 10 years. How much will you receive on the next coupon d...

Q: The contract size for platinum futures is 50 troy ounces. Suppose

The contract size for platinum futures is 50 troy ounces. Suppose you need 300 troy ounces of platinum and the current futures price is $2,025 per ounce. How many contracts do you need to purchase? Ho...

Q: You found the following stock quote for Gigantus Corporation in today’s newspaper

You found the following stock quote for Gigantus Corporation in today’s newspaper. What was the stock selling for on January 1? Use the following bond quote for Problems 9 and 10:...

Q: What is the yield to maturity of the bond? What is

What is the yield to maturity of the bond? What is the current yield of the bond?

Q: The World Income Appreciation Fund has current assets with a market value

The World Income Appreciation Fund has current assets with a market value of $8.5 billion and has 410 million shares outstanding. What is the net asset value (NAV) for this mutual fund?

Q: You invested $10,000 in a mutual fund at the

You invested $10,000 in a mutual fund at the beginning of the year when the NAV was $32.24. At the end of the year, the fund paid $0.24 in short-term distributions and $0.41 in long-term distributions...

Q: Suppose the mutual fund in Problem 1 has a current market price

Suppose the mutual fund in Problem 1 has a current market price quotation of $21.89. Is this a load fund? If so, calculate the front-end load. Data from Problem 1: The World Income Appreciation Fund...