Questions from General Investment

Q: You find the following order book on a particular stock. The

You find the following order book on a particular stock. The last trade on the stock was at $70.54. a. If you place a market buy order for 100 shares, at what price will it be filled? b. If you pl...

Q: You are given the following information concerning two stocks that make up

You are given the following information concerning two stocks that make up an index. What is the price-weighted return for the index?

Q: In Problem 5, assume that you want to re index with

In Problem 5, assume that you want to re index with the index value at the beginning of the year equal to 100. What is the index level at the end of the year? Data from Problem 5: Calculate the inde...

Q: In Problem 5, assume the value-weighted index level was

In Problem 5, assume the value-weighted index level was 408.16 at the beginning of the year. What is the index level at the end of the year? Data from Problem 5: Calculate the index return for the i...

Q: The value of beta for Country Point is: a.

The value of beta for Country Point is: a. 1.09 b. 1.27 c. 1.00

Q: JJ Industries will pay a regular dividend of $2.40

JJ Industries will pay a regular dividend of $2.40 per share for each of the next four years. At the end of the four years, the company will also pay out a $40 per share liquidating dividend, and the...

Q: Johnson Products earned $2.80 per share last year and

Johnson Products earned $2.80 per share last year and paid a $1.25 per share dividend. If ROE was 14 percent, what is the sustainable growth rate?

Q: Joker stock has a sustainable growth rate of 8 percent, ROE

Joker stock has a sustainable growth rate of 8 percent, ROE of 14 percent, and dividends per share of $1.65. If the P/E ratio is 19, what is the value of a share of stock?

Q: A certain stock has a beta of 1.3. If

A certain stock has a beta of 1.3. If the risk-free rate of return is 3.2 percent and the market risk premium is 7.5 percent, what is the expected return of the stock? What is the expected return of a...

Q: Bill’s Bakery expects earnings per share of $2.56 next

Bill’s Bakery expects earnings per share of $2.56 next year. Current book value is $4.70 per share. The appropriate discount rate for Bill’s Bakery is 11 percent. Calculate the share price for Bill’s...