Question: There are 9 finance calculation problem, help me fix it and you have to show the calculation steps for each questions. 1. You buy a

 There are 9 finance calculation problem, help me fix it and

There are 9 finance calculation problem, help me fix it and you have to show the calculation steps for each questions.

you have to show the calculation steps for each questions. 1. You

1. You buy a stock on February 1. By June 1 of the same year, your investment has earned you a 5.2% return. Find the annualized return (based your calculation on full months held). 2. You are going to invest in XYZ Enterprises, Inc. The company has been growing at 35% per year and you believe this rate will last for two more years. After that, you believe the firm will grow at 7% per year indefinitely. Dividends last paid were $2 million, and investors currently require a return of 18%. What is the total value of the company? 3. What is the market risk premium on a stock if investors require a 10% rate of return, beta is 1.6, and the risk free rate is 2%? 4. You purchase a call option for stock Y with an exercise price of $33. The fee for the call is $2.50. What is your net profit or loss if the price of the stock falls to $30 (remember that standard option contracts are for 100 shares)? 5. You purchase a put option for stock Z with an exercise price of $27. The fee for the call is $2.50. What is your net profit or loss if the price of the stock falls to $21 (remember that standard option contracts are for 100 shares)? 6. You earn the following returns: Year Retur : n: 1 -30% 2 50% 3 7% a.) Find the arithmetic average return b.) Find the geometric average return 7. You decide to open a margin account. You have $8,500 of your own money to contribute. The initial margin is 40%. The maintenance margin is 35%. You decide to invest in stock A and the quote is Q66.33/66.92. a.) How many shares of stock can you purchase? b.) At what price will you receive a margin call? 8. You see the following stock quote for stock X: Q40.89/41.01. a.) You decide to short the stock. You short 10 shares, then the price rises to $45.00. Calculate the profit/loss. b.) You decide to take a long position and buy 10 shares. The price rises to $45.00. Calculate the profit/loss. 9. Calculate the price weighted and value weighted returns for an index made up of these stocks: Stoc k Shares Yr 1 price Yr 2 price A 500 40 53 B 250 30 12 C 250 15 31

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