The stock of Blue Water Tours, Inc. is expected to return 23.50 percent in a boom economy,
Question:
The stock of Blue Water Tours, Inc. is expected to return 23.50 percent in a boom economy, 18.50 percent in a normal economy, and lose 17.50 percent in a recessionary economy. What is the expected rate of return on this stock if there is a 5.00 percent chance the economy booms, and an 87.00 percent chance the economy will be normal?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
Particulars Rate of Return ...View the full answer
Answered By
Kainat Shabbir
i am an experienced qualified expert with a long record of success helping clients overcome specific difficulties in information technology, business and arts greatly increasing their confidence in these topics. i am providing professional services in following concerns research papers, term papers, dissertation writing, book reports, biography writing, proofreading, editing, article critique, book review, coursework, c++, java, bootstarp, database.
5.00+
184+ Reviews
255+ Question Solved
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
Question Posted:
Students also viewed these Managerial Accounting questions
-
The stock of Sedly Inc. is expected to pay the following dividends. At the end of the fourth year its value is expected to be $37.50. What should Sedly sell for today if the return on stocks of...
-
The dividend for Should I, Inc., is expected to grow at 21 percent for the next 12 years before leveling off at a 5 percent rate indefinitely. If the firm just paid a dividend of $1.40 and you...
-
Siblings, Inc., is expected to maintain a constant 6.4 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.3 percent, what is the required return on the...
-
(a) A dice is thrown n times where n is a sufficiently large enough number to provide a uniformly distributed set of results. What would be the conditions for the arrangement of the result set that...
-
Find the values of a needed to make the following transformation orthogonal. -a a
-
Is the trust pattern incomplete without the use of other patterns? Explain briefly.
-
A spare parts seller finds that 3 in every 100 parts sold is defective. Find the probability that (a) the first defective part is the eighth part sold, (b) the first defective part is the first,...
-
Awesome Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 2016 follow, along with the general ledger accounts...
-
A scooter has a 3.5 litres petrol tank. It uses 15 ml of petrol per lap of a 300m track. a) If Sarah fills up the tank, how many laps of the track can she do? b) How many kilometres can Sarah travel...
-
Given the following sketches, generate an Excel spreadsheet: 1) Count the total degrees of freedom in the sketch. 2) Count the constraints 3) Provide the number of dimensions that are necessary to...
-
A stock is expected to earn 35 percent in a boom economy and 17 percent in a normal economy. There is a 45 percent chance the economy will boom and a 55.0 percent chance the economy will be normal....
-
One of the few surviving on-line grocers, Fresh Direct uses 150 trucks to generate delivery within 2 hours. Currently Fresh Direct sells $200 million worth of food per year representing 2 million...
-
At the beginning of 2019, Conley Company purchased an asset at a cost of $10,000. For financial reporting purposes, the asset has a 4-year life with no residual value and is depreciated by the...
-
Solve the inequality involving absolute value. 2-2+613 Enter the exact answer in interval notation. To enter oo, type infinity. To enter U, type U. Show your work and explain, in your own words, how...
-
On the April 4 billing date, Michaelle Chappell had a balance due of $1065.77 on her credit card. From April 4 through May 3, Michaelle charged an additional $402.89 and made a payment of $600. a)...
-
Team Name Buffalo Bisons Lehigh Valley IronPigs Pawtucket Red Sox 5 Rochester Red Wings 23 45 Scranton-Wilkes 6 Barre Yankees 7 Syracuse Chiefs 8 Charlotte Knights Durham Bulls Norfolk Tides 10 11...
-
5. Find a function f(x) with derivative f'(x)=cc
-
KORBIN COMPANY Comparative Balance Sheets December 31 Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in...
-
The financial statements of Apple Inc. are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the companys website. Instructions...
-
An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after the issue date at a rate of 6.8% p.a., calculate the amount of...
-
The Johnson Company pays $200 a month to a trucker to haul wastepaper and cardboard to the city dump. The material could be recycled if the company were to buy a $6000 hydraulic press bailer and...
-
An engineer has a fluctuating future budget for the maintenance of a particular machine. During each 01 the first 5 years, $1000 per year will be budgeted. During the second 5 years, the annual...
-
An engineer wishes to have $5 million by the time he retires in 40 years. Assuming 15% nominal interest, compounded continuously, what annual sum must he set aside?
-
Suppose you invest 52%, 28%, and 20% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the stock is 1.1. What is the beta of the portfolio?
-
An investment of $21745, earning compound interest, grows by $2278 in one year. At this rate of growth, how long will it take for the original investment to double?
-
On September 12, 3,400 shares of Denver Company's common stock are acquired at a price of $58 per share plus a $170 brokerage commission. On October 15, an $1.20-per-share dividend was received on...
Study smarter with the SolutionInn App