Fin534- Homework Set 3

In: Business and Management

Submitted By kdoggy325
Words 566
Pages 3
Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 $17.49 $5.97 2012 $22.13 $1.59 $78.45 $4.35 $13.17 $8.55 2011 $24.75 $1.50 $73.13 $4.13 $13.01 $9.97 2010 $16.13 $1.43 $85.88 $3.75 $9.65 $1.05 2009 $17.06 $1.35 $90.00 $3.38 $8.40 $3.42 2008 $11.44 $1.28 $83.63 $3.00 $7.05 $8.96 Portfolio Goodman Landry
1. Calculate annual returns for Goodman, Landry, and the Market Index, and then calculate average annual returns for the two stocks and the index. Year Goodman Industries Landry Incorporated Market Index 0.5 0.5 2013 25% -1% 78% 11.9% 2012 -4% 13% 67% 4.5% 2011 63% -10% 138% 26.4% 2010 3% 0% 27% 1.3% 2009 61% 12% 68% 36.3% Goodman Landry Market
2. Calculate the standard deviations of the returns for Goodman, Landry, and the Market Index. 0.314403844 0.097073424 0.399373399 Goodman Landry
3. Estimate Goodman’s and Landry’s betas as the slopes of regression lines with stock return on the vertical axis (y-axis) and market return on the horizontal axis (x-axis). 0.531274411 -0.128238662 0.201517875 4. The risk-free rate on long-term Treasury bonds is 6.04%. Assume that the market risk premium is 5%. What is the required return on the market using the SML equation? ri = rRF + bi*(rM - rRF) rRF = 6.04% rM = 5.00% Goodman Industries Landry Incorporated 5.49% 6.17%

5. If you formed a portfolio that consisted of 50% Goodman stock and 50% Landry stock, what would be its beta and its required return? beta= 0.201517875 Portfolio…...

Similar Documents

Mat 540 Week 6 Homework Set 3

...MAT 540 Week 6 Homework Set 3 Click below link for Answer http://workbank247.com/q/mat-540-week-6-homework/2897 http://workbank247.com/q/mat-540-week-6-homework/2897 Homework Chapter 2 2. A company produces two products that are processed on two assembly lines. Assembly line 1 has 100 available hours, and assembly line 2 has 42 available hours. Each product requires 10 hours of processing time on line 1, while on line 2 product 1 requires 7 hours and product 2 requires 3 hours. The profit for product 1 is $6 per unit, and the profit for product 2 is $4 per unit. a. Formulate a linear programming model for this problem. b. Solve the model by using graphical analysis. 6. The Pinewood Furniture Company produces chairs and tables from two resources – labor and wood. The company has 80 hours of labor and 36 board-ft. of wood available each day. Demand for chairs is limited to 6 per day. Each chair requires 8 hours of labor and 2 board-ft. of wood, whereas a table requires 10 hours of labor and 6 board-ft. of wood. The profit derived from each chair is $400 and from each table, $100. The company wants to determine the number of chairs and tables to produce each day in order to maximize profit. Formulate a linear programming model for this problem. a. Formulate a linear programming model for this problem. b. Solve the model by using graphical analysis. 7. In Problem 6, how much labor and wood will be unused if the optimal...

Words: 573 - Pages: 3

Fin534 Week 8 Discussion and Homework Set 4

...FIN534 Week 8 Discussion and Homework Set 4 FIN534 Week 8 Discussion Click the link above to respond to the discussion. If you need help with completing discussions please click here for more information. "Distributions to Shareholders" Please respond to the following: * * From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a stockholder in a company. Determine whether you would prefer to see the company that you researched declare a 100% stock dividend or declare a 2-for-1 split. Provide support for your answer with one (1) real-world example of your preference. * * From the scenario, examine the dividend rate that TFC is paying in order to determine if the company should receive a rate adjustment. Suggest whether TFC’s dividends should either (1) stay the same; (2) be increased; (3) or go down. Provide a rationale for your response. FIN534 Week 8 Homework Set 4 Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. This homework assignment is worth 100 points. Use the following information for Questions 1 through 5: Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS: Year Project A Project B 0 −$400 −$650 1 −528......

Words: 797 - Pages: 4

Fin534 Week 8 Homework Set 4

...FIN534 Week 8 Discussion and Homework Set 4 FIN534 Week 8 Discussion Click the link above to respond to the discussion. If you need help with completing discussions please click here for more information. "Distributions to Shareholders" Please respond to the following: * * From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a stockholder in a company. Determine whether you would prefer to see the company that you researched declare a 100% stock dividend or declare a 2-for-1 split. Provide support for your answer with one (1) real-world example of your preference. * * From the scenario, examine the dividend rate that TFC is paying in order to determine if the company should receive a rate adjustment. Suggest whether TFC’s dividends should either (1) stay the same; (2) be increased; (3) or go down. Provide a rationale for your response. FIN534 Week 8 Homework Set 4 Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. This homework assignment is worth 100 points. Use the following information for Questions 1 through 5: Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS: Year Project A Project B 0 −$400 −$650 1 −528......

Words: 797 - Pages: 4

Fin534 Homework Set #3

...FIN 534 – Homework Set #3 Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. This homework assignment is worth 100 points. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Year Stock Price 2013 $25.88 2012 22.13 2011 24.75 2010 16.13 2009 17.06 2008 11.44 Landry Incorporated Stock Price Dividend $73.13 $4.50 78.45 4.35 73.13 4.13 85.88 3.75 90.00 3.38 83.63 3.00 Market Index Includes 17.49 13.17 13.01 9.65 8.40 7.05 Dividend $1.73 1.59 1.50 1.43 1.35 1.28 Dividends 5.97 8.55 9.97 1.05 3.42 8.96 1. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then calculate average annual returns for the two stocks and the index. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and then dividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate...

Words: 722 - Pages: 3

Fin534 Week 10 Homework Set 5

...FIN534 Week 10 Homework Set 5 A graded original plagrism free answer can be downloaded from here http://www.homeworkmarket.com/content/fin534-week-10-homework-set-5 Use the following information for Questions 1 through 3: Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years and in 2013 Boehm paid dividends of $2.6 million on net income of $9.8 million. However, in 2014 earnings are expected to jump to $12.6 million, and Boehm plans to invest $7.3 million in a plant expansion. This one-time unusual earnings growth won’t be maintained, though, and after 2014 Boehm will return to its previous 8% earnings growth rate. Its target debt ratio is 35%. Calculate Boehm’s total dividends for 2014 under each of the following policies: 1. Its 2014 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. 2. It continues the 2013 dividend payout ratio. 3. It uses a pure residual policy with all distributions in the form of dividends (35% of the $7.3 million investment is financed with debt). 4. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy. Use the following information for Questions 5 and 6: Schweser Satellites Inc. produces satellite earth stations that sell for $100,000 each. The firm’s fixed costs, F, are $2 million, 50 earth stations are......

Words: 731 - Pages: 3

Fin534 Homework Set 2

...FIN 534 – Homework Set #2 Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. This homework assignment is worth 100 points. Use the following information for Questions 1 through 5: Assume that you are nearing graduation and have applied for a job with a local bank. The bank’s evaluation process requires you to take an examination that covers several financial analysis techniques. The first section of the test asks you to address these discounted cash flow analysis problems: 1. What is the present value of the following uneven cash flow stream −$50, $100, $75, and $50 at the end of Years 0 through 3? The appropriate interest rate is 10%, compounded annually. 2. We sometimes need to find out how long it will take a sum of money (or something else, such as earnings, population, or prices) to grow to some specified amount. For example, if a company’s sales are growing at a rate of 20% per year, how long will it take sales to double? 3. Will the future value be larger or smaller if we compound an initial amount more often than annually— for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? 4. What is the effective annual rate (EAR or EFF%) for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded...

Words: 544 - Pages: 3

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://chosecourses.com/FIN%20534/fin-534-week-6-homework-set-3 Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 ...

Words: 2525 - Pages: 11

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://chosecourses.com/FIN%20534/fin-534-week-6-homework-set-3 Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 ...

Words: 632 - Pages: 3

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://chosecourses.com/FIN%20534/fin-534-week-6-homework-set-3 Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 ...

Words: 632 - Pages: 3

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://chosecourses.com/FIN%20534/fin-534-week-6-homework-set-3 Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 ...

Words: 632 - Pages: 3

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://chosecourses.com/FIN%20534/fin-534-week-6-homework-set-3 Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 ...

Words: 1894 - Pages: 8

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://chosecourses.com/FIN%20534/fin-534-week-6-homework-set-3 Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 ...

Words: 3156 - Pages: 13

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://chosecourses.com/FIN%20534/fin-534-week-6-homework-set-3 Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 ...

Words: 4418 - Pages: 18

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://homeworkonestop.com/FIN%20534/fin-534-week-6-homework-set-3 Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 9.65 ...

Words: 3156 - Pages: 13

Fin 534 Week 6 Homework Set 3

...FIN 534 Week 6 Homework Set 3 Purchase here http://sellfy.com/p/HBXT/ Product Description Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both.Use the following information for questions 1 through 8: The Goodman Industries’ and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Stock Price Dividend Stock Price Dividend Includes Dividends 2013 $25.88 $1.73 $73.13 $4.50 17.49 5.97 2012 22.13 1.59 78.45 4.35 13.17 8.55 2011 24.75 1.50 73.13 4.13 13.01 9.97 2010 16.13 1.43 85.88 3.75 9.65 1.05 2009 ...

Words: 3130 - Pages: 13

Supernatural | xem phim trên iphone ipad anroid | Forever (66)