40 questions about corporate finance - Coursework Example

What was his annual rate of return on this sculpture? 4. You expect to receive $17,000 at graduation in two years. You plan on investing it at 9 percent until you have $94,000. How long will you wait from now? (Do not round your intermediate calculations.) 8. Teder Corporation stock currently sells for $55 per share. The market requires a 13 percent return on the firms stock.Required : If the company maintains a constant 6 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

10 Suppose you know a companys stock currently sells for $70 per share and the required return on the stock is 16 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. Required: If its the companys policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? 14. Imprudential, Inc., has an unfunded pension liability of $500 million that must be paid in 18 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present.

If the relevant discount rate is 8.5 percent, what is the present value of this liability? 23You own a portfolio equally invested in a risk free asset and two stocks. If one of the stocks has a beta of 1.6 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? 25. Your coin collection contains 59 1943 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2033, assuming they appreciate at a 7 percent annual rate? 26. You own a portfolio that has $2,500 invested in Stock A and $3,750 invested in Stock B.

If the expected returns on these stocks are 9 percent and 14 percent, respectively, what is the expected return on the portfolio?(Do not round your intermediate calculations.) 34. You own a