Question: Assignment Problems 1. Exactly one year ago, Harv bought 500 shares of Primer Corp stock for $40.95. He plans on selling all of the shares

 Assignment Problems 1. Exactly one year ago, Harv bought 500 shares

Assignment Problems 1. Exactly one year ago, Harv bought 500 shares of Primer Corp stock for $40.95. He plans on selling all of the shares today at the current market price of $37.75. Over the last year, Primer Corp. paid out dividends of S0.75 per share on its common stock. What is Harv's holding period return for the year on Primer Corp. stock? Submit your answer as a percentage and round to two decimal places. 2. Analysts predict that over the next year, Thete, Inc.'s common stock has a 30% chance of returning 25%, a 40% chance of returning 16%, and a 30% chance of returning 6% What is the expected rate of retum on Thete, Inc.'s common stock? Submit your answer as a percentage and round to two decimal places. 3. Analysts predict that over the next year, Thete, Inc.'s common stock has a 30% chance of returning 25%, a 40% chance of returning 16%, and a 30% chance of returning 6%. What is the standard deviation of returns on Thete, Inc.'s common stock? Submit your answer as a percentage and round to two decimal places. 4. Han Corporation issues a bond which has a coupon rate of 9.40%, a yield to maturity of 7.75%, a face value of $1,000, and a market price of $990. What is the semiannual interest payment? Round to two decimal places. 5. A shipping company sold an issue of 14-year $1.000 par bonds to build new ships. The bonds pay 12% interest, compounded semiannually. Today's required rate of return is 7.50% How much should these bonds sell for today? Round to two decimal places. 6. Atlantis Company issued bonds on January 1, 2006. The bonds had a coupon rate of 5.0%, with interest paid semiannually. The face value of the bonds is $1.000 and the bonds mature on January 1, 2028. What is the yield to maturity for these bonds on January 1, 2020 if the market price of the bond on that date is $960? Submit your answer as a percentage and round to two decimal places. 7. Consider a 9-year bond with face value $1,000 that pays an 8.8% coupon semi-annually and has a yield-to-maturity of 6.5%. What is the approximate percentage change in the price of bond if interest rates in the economy are expected to decrease by 0.60% per year? Submit your answer as a percentage and round to two decimal places. (Hint: What is the expected price of the bond before and after the change in interest rates?) 8. Hackworth Company's common stock is expected to pay a $4.10 dividend in the coming year. If investors require a 13% return and the growth rate in dividends is expected to be 8%, what should the market price of the stock be? Round to two decimal places. 9. Nell Corporation stock is currently selling for $24.50. The stock is expected to pay a dividend of S2.25 at the end of the year. Dividends are expected to grow at a constant rate of 4% indefinitely Compute the expected rate of return on Nell Corporation stock. Submit your answer as a percentage and round to two decimal places. 10. Finkle-McGraw Corp.just paid a dividend today of $2.60 per share. The dividend is expected to grow at a constant rate of 4.6% per year. If Finkle-McGraw Corp. stock is selling for $72.00 per share, what is the stockholders' expected rate of return? Submit your answer as a percentage and round to two decimal places

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!