Accounting Help for College and University Students

Calculating the dividend yield and capital gain yield.

Suppose a stock had an initial price of $63 per share, paid a dividend of $1.25 per share during the year, and had an ending share price of $52. What was the dividend yield? The capital gain yield?

Calculate total dollar return; nominal rate of return; total real rate of return on a bond

Suppose you had bought a 12% coupon bond one year ago for $1120. The bond sells for $1085 today. a) assuming a $1000 face value, what was your total dollar return on this investment over the past year? b) What was your total nominal rate of return on this investment over the past year? c) if the inflation rate last year ...continues

Calculating returns, variances, standard deviations for X and Y

Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y. See attached spreadsheet for the data. Prob #7 RETURNS Year X Y 1 10% 26% 2 18 -4 3 -8 -10 4 12 42 5 6 21

Calculate the total return on preferred stock.

You bought a share of 7% preferred stock for $87.50 last year. The market price for your stock is now $95.75. What is your total return for last year?

Nominal and Real rate of return on investment in bonds

You bought one of Tappan Manufacturing Co.'s 9% coupon bonds one year ago for $1,002.50. These bonds make annual payments and mature six years from now. Suppose you decided to sell your bonds today, when the required return on the bonds is 10%. If the inflation rate was 6.5% over the past year, what would be your total real r ...continues

Problem 11-10: Calculate expected return and standard deviation of portfolio

Consider the information on the attached spreadsheet. a. Your portfolio is invested 35% each in A and C, and 30% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation? Problem 11-10 Rate of Return, if State Occurs Probability of St ...continues

Expected return and standard deviation of two stocks with returns stated for different states of economy- Recession, Normal, Boom

Based on the attached information, calculate the expected return and standard deviation for the two stocks. Probability of State of Economy Stock P Rate of Return Stock Q Rate of Return State of Economy Recession 0.15 0.04 ...continues

Calculate CAPM (Beta) of a stock.

A stock has an expected return of 17%, the risk-free rate is 5%, and the market risk premium is 8%. What must the beta of this stock be?

Figuring the CAPM: What must the expected return be?

A stock has an expected return of 10%, its beta is 0.9, and the risk-free rate is 5%. What must the expected return on the market be?

Determining the CAPM: what is the Risk-free rate

A stock has an expected return of 20% and a beta of 1.5, and the expected return on the market is 15%. What must the risk-free rate be?