The current price of stock corp stock is $26.50 per share. Earnings next year should be $2 per share and it should pay a $1 dividend. The P/E multiple is 15 times an average. What price would you expect for future stock _______
Suppose you have invested $30,000 in the following four stocks:
Security Amount Invested Beta
Stock A $5,000 0.75
Stock B $10,000 1.1
Stock C $8,000 1.36
Stock D $7,000
Common stock usually has higher potential for changes in prices (up or down) which translate in higher returns or losses. Given this fact, would you expect common stock to be higher or lower price than preferred stock all else being equal?
A common stock currently has a beta of 1.3, the risk factor is an annual 6 percent, and the market return is an annual rate of 12 percent. The stock is expected to generate per-share benefits of $5.20 during the coming period. A toxic spill results in a lawsuit and potential fines, and beta of the stock jumps 1.6. The new equ
10. If a firm executed a 3-for-1 stock split, you would expect that the value of
a. an investment in the firm should increase because having 3 stocks is clearly better than 1.
b. each new stock should be approximately 3 times the value of the original stock
c. each new stock should be approximately equal to the value o
Which of the following is correct regarding a two-for-one stock split?
a. The purpose of the split may be to decrease the value per share of the stock.
b. The purpose of the split is to make a distribution to the stockholders.
c. After the split, each stockholder will have a greater ownership interest in the corporat
Preferred Stock is valued as if it were _____
a fixed income obligation, a bond, a perpetuity, or a common stock
I believe the answer is - a fixed income obligation - please advise answer & why - thanks!
