D. S. Trucking Company stock pays a $1.50 dividend every year. A year ago the stock sold for $25 per share, and its total return during the past year was 20%. What does the stock sell for today?
Answer to relevant QuestionsAt the end of each line, we show the nominal value in 2006 of a $1 investment in stocks, bonds, and bills. Calculate the ratio of the 2006 value of $1 invested in stocks divided by the 2006 value of $1 invested in bonds. Now ...Why should stock betas and expected returns be related, while no such relationship exists between stock standard deviations and expected returns? Kevin Federline recently inherited $1 million and has decided to invest it. His portfolio consists of the following positions in several stocks. Calculate the portfolio weights to fill in the bottom row of the table. If the IRR for a given project exceeds a firm’s hurdle rate, does that mean that the project necessarily has a positive NPV? Explain. Why do we consider changes in net working capital associated with a project to be cash inflows or out-flow rather than consider the absolute level of net working capital?
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