1. Calculating Returns ( LO1‚ CFA1) Suppose you bought 100 shares of stock at an initial price of $ 37 per share. The stock paid a dividend of $ 0.28 per share during the following year‚ and the share price at the end of the year was $ 41. Compute your total dollar return on this investment. Does your answer change if you keep the stock instead of selling it? Why or why not? 2. Calculating Yields ( LO1‚ CFA1) In the previous problem‚ what is the capital gains yield? The dividend yield? What is
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Q * Expected returns of A and B are 12% and 16%. The betas of A and B are 0.7 and 1.4. T-bill rate is 5%. S&P 500 is expected to earn 13%. Std of A is 12% and that of B is 31% and that of S&P 500 is 18%. * If you currently hold a market index portfolio‚ would you choose to add either of these portfolios to your holdings? * If instead you could invest only in T-bills and one of these portfolios‚ which would you choose? Q * Carl‚ a portfolio manager for the Alpine Trust
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Every investment is characterised by return and risk. The concept of risk is intuitively understood by investors. In general‚ it refers to the possibility of incurring a loss in a financial transaction. But risk involves much more than that. The word ‘risk’ has a definite financial meaning. The possibility of variation of the actual return from the expected return is termed risk. Corporate securities and government securities constitute important investment avenues for investors
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sector firms‚ restrictions on foreign investment‚ high tariff and non-tariff restrictions on imports‚ which held up the growth of the manufacturing sector in India. This has been replaced by a more liberal industrial and trade policy regime‚ through the inception of new economic policy in 1991. The major focus of these policies had been to dismantle the complex web of controls that severely constrained the emergence and operation of the private entrepreneurs. Investment performance has been a key emphasis
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Adult Learning April R. Gaines Mary Joseph-Martin November 25‚ 2012 AET/505 - FOUNDATIONS OF ADULT EDUCATION AND TRAINING Adult Learning Adult learning is a way to separate the way adults learn from the way children learn. Physiologically‚ learning is the formation of cell assemblies and phase sequences. Children learn by building these assemblies and sequences. Adults spend more time making new arrangements than forming new sequences. They
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Executive Summary This report intends to highlight the current issues StarHub faces and its impact on their earnings and share valuations. Telco industry in Singapore only has three players – StarHub‚ SingTel and M1‚ thus‚ we would also look at SingTel and M1 to aid in our analysis. In our report‚ we first use the SWOT analysis and Michael Porter’s five forces to address StarHub current issues as the issues identified would affect StarHub future earnings. The majority of the threats that StarHub
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Finance 400- International Finance Foreign markets can be very attractive to investors because indexes in various countries around the world have managed a double or triple digit return on investments. Investors realize these high returns and pursue to invest in foreign markets. There are different ways to invest in foreign markets. There are three main ways to invest in foreign markets‚ Exchange traded funds (ETF) or mutual funds‚ American Depositary Receipts (ADR)‚ and through multinational
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employee $2‚500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can 0.25 Other variable production costs per can 0.05 Costs to purchase cans - per can 0.45 Required rate of return 12% Tax rate 35% Make Purchase Cost to produce Annual cost of direct material: Need of 1‚100‚000 cans per year $275‚000 Annual cost of direct labor for new employees:
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these shares on margin 12 months ago at a cost per share of $35. The initial margin requirement on this stock is 60 percent and the maintenance margin is 30 percent. Robin also needs to pay loan rate of 3.0 percent. What is her total dollar return on this investment? 800 Shares $29440 Assets $35 cost per share $28000 x .6 = $16800 $28000 - $16800 = $11200 3% of $11200 = 336 $29440 -11536 = $17904 $17904 - $16800 = $1104 5. Rudolfo purchased 900 shares of stock for $62.20 a share six
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Investment Appraisal: The Gamma plc case Gamma plc is considering buying a new machine to expand their production of office furniture. The machine costs £1.3 million and will last for 5 years. The scrap value of these machines is £150‚000. It is expected that the asset will be sold for this value on the last day of the fifth year‚ and that a replacement machine will then be purchased. An investment of £120‚000 in working capital will be needed initially. The projected financial data
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