# 16. Which of these three stock would you rather own if you rate of discount is 5%?

95,133 results

### finace

16. Which of these three stock would you rather own if you rate of discount is 5%? a. stock that currently earns $2 per share whose earnings are growing 3% each year. b. stock that currently earns $1 per chare whose earnings are growing 4% each year. c. sock that currently ...

### BUS 401

Which of the following statments regarding the cost of preferred stock is true? a.It is typically found by solving for an annuity’s discount rate. b. It is tpically found by solving for an annuity's due's discount rate. C. It is found similarly to a perpetuity's discount ...

### Accounting

How would I find the formula for these problems? Please help me.. I would really appreciate it.. thank you Calculate the present value of the following: $7,000 in 5 years at an annual discount rate of 6% $7,000 in 5 years at a semiannual discount rate of 6% $7,000 in 5 years ...

### Finance

what is the value of a preferred stock when the dividend rate is 14% on a $100 value? the appropriate discount rate for a stock of this risk level is 12%

### Financing and Accounting

How would I find the formula for these problems? Please help me.. I would really appreciate it.. thank you Calculate the present value of the following: $7,000 in 5 years at an annual discount rate of 6% $7,000 in 5 years at a semiannual discount rate of 6% $7,000 in 5 years ...

### math problem

Real Versus Nominal Returns. A foreign stock market provided a rate of return of 95 percent. The inflation rate in this country during the year was 80 percent. In the United States, in contrast, the stock market return was only 12 percent, but the inflation rate was only 2 ...

### managerial Economics

If a stock is expected to pay an annual dividend of $20 forever, what Is the approximate present value of the stock, given that the discount Rate is 5%?

### finance

. Suppose you just inherited an gold mine. This gold mine is believed to have three years worth of gold deposit. Here is how much income this gold mine is projected to bring you each year for the next three years: Year 1: $49,000,000 Year 2: $61,000,000 Year 3: $85,000,000 ...

### finance (higher interest rate)

A higher interest rate (discount rate) would? A. reduce the price of corporate bonds B. reduce the price of preferred stock C. reduce the price of common stock D. all of the above I remember reading about the relationship between interest and bonds/stocks. When the FR raises ...

### Finance

Universal Laser, Inc., just paid a dividend of $3.30 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year, indefinitely. Investors require a return of 15 percent on the stock for the first three years, a rate of return of 13 percent for ...

### math

Shirley has $16,000 invested in Boeing and GE stock. The Boeing stock currently sells for $30 a share and the GE stock for $70 a share. If GE stock triples in value and Boeing stock goes up 50%, her stock will be worth $34,500. how many shares of each stock does she own?

### math

Shirley has $16,000 invested in Boeing and GE stock. The Boeing stock currently sells for $30 a share and the GE stock for $70 a share. If GE stock triples in value and Boeing stock goes up 50%, her stock will be worth $34,500. how many shares of each stock does she own?

### Finance math

Consider the project with the following expected cash flows: Year Cash flow 0 -$400,000 1 $100,000 2 $120,000 3 $850,000 •If the discount rate is 0%, what is the project's net present value? •If the discount rate is 2%, what is the project's net present value? •If the ...

### introduction to business

The rate the feds charges members banks for short term loans is called: A.reserve requirement b. discount rate c. margin rate d. federal rate My answer is B Discount rate can someone please verify...thanks in advance

### Finance

You purchase XYZ company's perpetual preferred stock, which pays a perpetual annual dividend of $8 per share. If the appropriate discount rate for this investment is 14%, what is the price of one share of stock? Thank You! 8/.14 = 57.14

### Business Math

The Treasury Department auctioned $21 billion in three-month bills in denominations of ten thousand dollars at a discount rate of 4.965%. what would be the effective rate in interest?

### Business Math

The Treasury Department auctioned $21 billion in three month bills in denominations of ten thousand dollars at a discount rate of 4.965%. What would be the effective rate of interest?

### principles of finance

You are considering the of xyz company's perpetual preferred stock, which pays a perpetual divend of $8 per. If the appropriate discount rate for this investment is 14%, what is the price of one share of this stock? Thank you. Preferred stock differs from common stock in that ...

### Finance

To finanance a purchase a company will sell 10 year bonds paying 6.6% per year at the market price of $1062. Preferred stock paying a $2.05 dividend can be sold for 25.93. Common stock is cirrently seeling for 54.29 per share and the firm paid a 2.92 dividend last year. ...

### Math

Purchased $10,000 in stock, invested $5000 of own money, borrowed remaining $5000 at 8% interest. Stock increases by 10%, what is the rate of the investor's return? I calculated 12%, is that correct?

### FINANCE 200

You receive $5000 three years from now. The discount rate is 8 percent. What is the value of your investment two years from now? (Multiply 5000 by .926 (one year discount rate at 8%) Will it be worth $9,260?

### Finance

Teddy Company paid a $3.50 dividend this year (D0 = $3.50). Next year the company expects to pay a $4.00 dividend (D1 = $4.00). The stock's dividend is expected to grow at a rate of 15 percent a year until three years from now (t = 3). After this time, the stock's dividend is ...

### investing

new millenium company's stock sells at a P/E ratio of 21 times earnings. it is expected to pay dividends of $2 per share in each of the next 5 years and to generate an EPS of $5 i year 5. using the dividends-and-earnings model and a 12% discount rate, compute the stock's ...

### math trade discount

In addition to the regular trade discount of 25% and a volume purchase discount of 8.33333333% from the manufacturer, Appliance Warehouse is offered a further 5% discount for orders places in January. a. What is the list price on an electric range whose net price works out to ...

### Business

Based on this financial info where a company's Beta Year = 2008, the Company's commons stock = 0.85, the Risk-Free Rate of Return = 5%, and the Market Risk Premium = 6%. Use the dividend growth model to calculate the Company's Common Stock in 2008. Stock 1 = 1.5, Stock 2 = 0....

### math

A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 7%, and if investors require an 11% rate of return, what is the price of the stock?

### Business math

A watch with a list price of $889.00 is sold by a wholesaler at a net cost of $545.75. Find the single trade discount rate being offered. round to the nearest tenth of a percent 889.00*61.4? since trade discount equals list price * trade discount percentage? 54.58 would be the...

### Finance

Suppose you just inherited a gold mine. This gold mine is believed to have three years worth of gold deposit. Here is how much income this gold mine is projected to bring you each year for the next three years: Year 1: $49,000,000 Year 2: $61,000,000 Year 3: $85,000,000 ...

### math

Pamela owns 37.5% of the stock of a corporation and sells 2/3 of her stock at a 10% profit, What percent of this stock does she own after this transaction? a. 12.5% b. 33 1/3% c. 66 2/3% d. 72.5% e. 90% please answer and explain

### math

A man makes a simple discount note with a face value of $2,200, a term of 140 days, and a 9% discount rate. Find the discount.

### FIN200- FV, PV and Annuity Due CP

I just want to know if anyone can help me in determining if I am on track with this assignment and if anyone can point out where I am wrong and how I need to fix it. I have already completed this assignment on my own and need someone to review it. Thank You Here is the ...

### math

I need to calculate the effective interest rate of a simple discount note $21,750 at an ordinary bank discount rate of 7.91% for 120 days find the effective rate

### Math

In this question we will check if a discount is actually a discount. Say you are to borrow $100 for a year at a simple interest rate of 10%. Determine the discount D and the proceeds P for this loan. Next take another look at the situation. You take away P dollars and at the ...

### math 106

In this question we will check if a discount is actually a discount. Say you are to borrow $100 for a year at a simple interest rate of 10%. Determine the discount D and the proceeds P for this loan. Next take another look at the situation. You take away P dollars and at the ...

### Math

What is the value of a stock that grows at a supernormal rate of 18% for the first four years, and then slows down to a constant growth rate of 10%? An annual dividend of $2.00/share was just paid, and the rate of return on common stock is 13%. Possible Solution: For a ...

### Information Technology (Pascal algorithm)

Ask the user to enter the discount percentage(rate) offered in a sale Accept the discount percentage from the user Ask the user to enter the price for three different sales item Accept the prices of the three sale items Compute the total price of the three items Compute the ...

### Math

A man makes a simple discount note with a face value of $2,300, a term of 140 days, and a 9% discount rate. Find the discount. (use the banker’s rule.)

### math bus 105

Calculate (a) interest and maturity value, (b) discount period, (c) bank discount, and (d) proceeds. Assume ordinary interest. (Round answers to nearest hundredths) Date of note Face value Length of note Interest rate Bank discount rate Date of discount Feb. 12 $80,000 150 ...

### math

a man has a simple discount note for $6,400 at an ordinary bank discount rate of 8.53% for 40 days what is the effective interest rate

### math

what is the effective interest rate of a simple discount note for $2700 at a bank discount rate of 12.25%, for 36 months?

### accounting

In determining the viability of a strategic investment, several pieces of information are required, including the cost of the project, the projected cash flows, and the discount, or interest, rate. In the Guillermo Furniture Scenario, which costs would you NOT consider, and ...

### programming

Create the logic for a program that calls a method that computes the final price for a sales transaction. The program contains variables that hold the price of an item, the salesperson's commission expressed as a percentage, and the customer discount expressed as a percentage...

### adult education

California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm’s dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock. 1. What is the stock’s value? ...

### finance

New York Times Co. (NYT) recently earned a profit of $1.31 per share and has a P/E ratio of 19.25. The dividend has been growing at a 6.50 percent rate over the past six years. If this growth rate continues, what would be the stock price in four years if the P/E ratio remained...

### Finance

Suppose your bank account will be worth $15,000.00 in one year. The interest rate (discount rate) that the bank pays is 7%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 4%?

### accounting

a simple discount note for $6,600 at a ordinary bank discount rate of 8.61% for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent

### Accounting

Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $33. What is the...

### Math

Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $33. What is the...

### math

1. A 120-day simple discount promissory note for $12,000 with a simple discount rate of 9% was signed on July 14. It was discounted on August 30 at 9.5%. Find the proceeds at the time of the sale. 2. 8. A $15,000 T-bill is purchased at a 3.85% discount rate for 16 weeks. Find...

### VBS 2010

Write a Web program to calculate the discount rate and interest rate for a bond. If a bond is purchased for n dollars and sold one year later for m dollars, then the discount rate is m-2/m and the interest rate is m-n/n, where each is expressed as a percent.

### Accounting

What is the value of a stock that grows at a supernormal rate of 18% for the first four years, and then slows down to a constant growth rate of 10%? An annual dividend of $2.00/share was just paid, and the rate of return on common stock is 13%.

### math/Finance

I want to know the formula to use 1. A 120-day simple discount promissory note for $12,000 with a simple discount rate of 9% was signed on July 14. It was discounted on August 30 at 9.5%. Find the proceeds at the time of the sale. 2. 8. A $15,000 T-bill is purchased at a 3.85...

### Math

Margaret received $671.50 in cash as proceeds from a loan of $680.00 The discount rate was 10% simple interest. Find the discount period in months. Hummm. With simple interest, a rate of 10% on $680, in one month the balance would be 680*(1+(0.1/12)) = 685.66666. Ergo, the ...

### Finance

25.Largent Supplies Corp. has borrowed to invest in a project. The loan calls for a payment of $17,384 every month for three years. The lender quoted Largent a rate of 8.40 percent with monthly compounding. At what rate would you discount the payments to find amount borrowed ...

### investments

eddy is considering a stock purchase. the stock pays constant annual dividend of $2.00 per share, and is currently trading at $20 . Eddy's required rate of return for this stock is 12%. should he buy this stock?

### investment

eddy is considering a stock purchase. the stock pays constant annual dividend of $2.00 per share, and is currently trading at $20 . Eddy's required rate of return for this stock is 12%. should he buy this stock?

### checking answers please help

1. $5000.00 compunded annually at 6% for 5 years= $6,691.1279 or $6,312.38? 2. $5000.00 compounded quartley at 6% for 5 years= $6,719.5819 or 8,744.37? 3. $5000.00 compounded quartley at 65 FOR 5 YEARS= $6,734.2750 or 3,64.86? 4. $5000.00 COMPOUNDED ANNUALLY FOR AT 6% FOR 6 ...

### Finance

1. $5000.00 compunded annually at 6% for 5 years= $6,691.1279? 2. $5000.00 compounded quartley at 6% for 5 years= $6,719.5819? 3. $5000.00 compounded quartley at 65 FOR 5 YEARS= $6,734.2750? 4. $5000.00 COMPOUNDED ANNUALLY FOR AT 6% FOR 6 YEARS= $7,092.5956...

### investing

(Dividend discount Model) Assume RHM is expected to pay a total cash dividend of $56.60 next year and its dividends are expected to grow at a rate of 6% per year forever. Assuming annual dividend payments, what is the current market value of a share of RHM stock if the ...

### Finance

Damon Enterprises' stock is currently selling for $25.00 per share. The stock's dividend is projected to increase at a constant rate of 7% per year. The required rate of return on the stock, rs, is 10%. What is Damon's expected price 4 years from today?

### business

In calculating the bank discount when discounting an interest-bearing note, which one of the following is not used in the calculation? A. Discount period B. Bank discount rate C. Principal proceeds B is my answer

### Finance

A common stock is just paid an annual dividend of $2 yesterday. The dividend is expeccted to grow at 8% annually for the next 3 years, after which is will grow at 4% in perpetuity. The appropriate discount rate is 12%. What is the priceof the stock? What I know: Differential ...

### math

Present Value suppose your bank account will be worth $7000 in one year. The interest rate (discount rate) that the bank pays is 8%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 3%

### personal finance

Jo owns 150 shares of Delta General stock. She purchased the stock for $24 a share. She sold the stock for $30 per share. The commissions required to buy and sell her stock cost her $120. Assuming that she received no dividends (income) during the time she owned the stock, ...

### finance

You have finally saved 10,000 and are ready to make your first investment. You have the three following alternatives for investing that money: 1) Captial cities ABC Inc. bonds with a par value of $1000 that pays an 8.75 percent on its par value in interest, sells for $1.34 and...

### math

You have finally saved 10,000 and are ready to make your first investment. You have the three following alternatives for investing that money: 1) Captial cities ABC Inc. bonds with a par value of $1000 that pays an 8.75 percent on its par value in interest, sells for $1.34 and...

### maths

a man holds a note of $6,000 that has an interest rate of 13% annually the note was made on march 17 and is due november 11 he sells the note to a bank on june 14 at a discount rate of 12% annually find the proceeds on the third-party discount rate.

### Correted Bob can you re-check?

So i pretty much had them right the first time with the first set of answers i just needed to round up? 1. $5000.00 compounded annually at 6% for 5 years= $6,691.13? 2. $5000.00 compounded quartley at 6% for 5 years= $6,719.58? 3. $5000.00 compounded quartley at 65 FOR 5 YEARS...

### finace

15. Suppose that the following version of the APT is a good model of rick in the stock market. Consider three factors: the stock market’s excess return in percentage points, the change over the last year in the price of oil in dollars, and the spread between 10 year treasury...

### Finance

Emerson Electric common stock is selling for $36.75. par value is $5. stock recently paid $1.32 in dividend and the firm's earnings per share increased from $1.49 to $3.06 in the past 5 years. The firm expects to grow at the same rate in the future. What is the value of stock...

### Math Help!!!!!

4) Jim has been offered a substantial cash discount if he pays an invoice 60 days earlier. One bank will loan him the needed money at 11% simple interest rate. A second bank will also loan him the money, but at bank discount rate. What is the maximum discount rate that Jim can...

### Finance

Carnation needs to buy a $12,500 part the part company is offering cash discount terms of 4/10, n30. Carnation has a tight cash flow, wants to discount a 180 day note dated February 12 with a maturity value of $10,300. Bank offers a discount rate of 6%. Should carnation ...

### PROGRAMMING

Create a C program that contains a function that computes the final price for a sales transaction and return that value to a calling method. The function requires three arguments: product price, salesperson commission rate and customer discount rate. A product final price is ...

### math

Home health signed a 90,000 note at 11 1/2% simple interest for 180 days for electronic equipment, on October 1. On February 18, the note was sold to another firm at a discount rate of 12 1/2%. Find a) the discount period, b) the discount, and c) the proceeds.

### math

a man holds a note of $6,000 that has an interest rate of 13% annually the note was made on march 17 and is due november 11 he sells the note to a bank on june 14 at a discount rate of 12% annually find the proceeds on the third-party discount rate. Ok now I m a little confused

### Finance

Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expected earnings this year are $2 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of Plowback Ratio - 0 ...

### English

1. I would rather die than surrender. 2. I would rather fail than cheat. 3. I would rather play games than study. 4. I would rather walk to work than go to work by car. ------------------------------- Are they all grammatical? Do we have to use the base verb after 'than'? Can ...

### Finance

whited inc. stock sells for $35.25 constant rate 4.50% per year required rate return is 11.50% what is stock expected price 5 years from now

### Finance

Hooks Athletics, Inc., has outstanding a preferred stock with a par value of $30 that pays a dividend of $2.50. The preferred stock is redeemable at the option of the stockholder in 10 years at a price equal to $30. The stock may be called for redemption by the company in 15 ...

### Business Math

What is the (net price equivalent rate-in decimals, Single Equivalent discount rate-in decimals, trade discount and net price)of a digital camera with List price $450 and chain discount 8/3?

### math

Compute the hurdle rate above based on the following.1. Note payable bank $2,000,000.00 with rate of 7.5%, The company has a tax rate of 30%.2. Bank Mortgage Loan $1,000,000.00 with rate of 6% The company has a tax rate of 30%.3. Preferred stock $750,000.00 with coupon rate 10...

### money and banking

use capital asset pricing model to predict the return next year stock, return holding stocks to be 12% on average, the interest rate on 3 month t-bills will be 2%. calculate a stock with a beta of -0.3, 0.7, and 1.6. show three separate calculations

### math

NVM's preferred stock currently has a market price equal to $80 per share. If the dividend paid on this stock is $6 per share, what is the required rate of return investors would get from NVM preferred stock?

### Finance

keenan corp. is comparing two different capital structure. plan 1: would result in 7000 shares of stock and $160,000 in debt. plan 2: would result in 5000 shares of stock and $24,000 in debt. the interest rate on the debt is 10 percent. Q: (a)ignoring taxes, compare the both ...

### Finance

Can anyone explain to me how to use this formula? Cost of failing to take a cash discount Disc ount percent 100 percent Discount percent 3 60 Final due date Discount period I am trying to calculate Assume the proceeds from the loan with the compensating balance ...

### Accounting

How can I find the supernormal growth rate and constant growth rate of a stock? V = D1/k-g V = the value of the stock D1 = the dividend next period k = the required rate of return g = constant growth rate I'm confused on how to combine the constant growth rate formula with the...

### algebra

The following note was discounted at 16%. Find (a) the discount period, (b) the discount, and (c) the proceeds. Date loan was made: March 15 Face Value: $6000 Length of Loan: 75 days Rate: 6% Date of Discount: April 5

### business Math

You were offered the opportunity to purchase either a simple interest note or a simple discount note with the following terms: $33,353 at 7% for 18 months. a. Calculate the effective interest rate. (Do not round intermediate calculations. Round your final answer to the nearest...

### Finance

Assume AirJet Best Parts has also a preferred stock issue. The most recent dividend per share paid on the stock was also $1.50, the same as the common stock. Which one would you think has a higher price, the preferred stock or the current stock?

### Math

A student ticket to a flower show costs $6.00 plus a 5% handling fee. The local schools receive a special group discount. A scholl can determine the total cost of tickets by using the formula below. T = Total cost N = Nmber of tickets purchased D = Discount rate T = n(6+6(.05...

### Finance

Simtek currently pays a $2.50 dividend (D0) per share. Next year’s dividend is expected to be $3 per share. Aft er next year, dividends are expected to increase at a 9 percent annual rate for three years and a 6 percent annual rate thereaft er. a. What is the current value ...

### finance

alpha of stock zero return on market 16% risk free rate 5% stock earns a return that exceeds risk free rate by 11% What is the Beta of the stock?

### investing

How do I find stock on margin rate of return? This is the question: Ed Delahanty purchased 500 shares of Niagara Corporation stock on margin at the beginning of the year for $30 per share. The initial margin requirement was 55%. Ed paid 13% interest on the margin loan and ...

### math/stock

You want to create a $75,000 portfolio comprised of two stocks plus a risk-free security. Stock A has an expected return of 13.6 percent and stock B has an expected return of 11.4 percent. You want to own $30,000 of stock B. The risk-free rate is 4 percent and the expected ...

### Math

At a sale Jean received a discount of $10.00 on a coat marked $80.00. What was the rate of the discount?

### buisness math

the single equivalent discount rate of the trade discount 3/3/1 is

### investing 3-2

Which of the following preferred stock properties would provide the best argument favoring purchase of preferred stock by an investor? A. When long-term bond yields decline, the value of preferred stock can potentially rise. B. Because preferred stock trading volume is lower ...

### math

The buying and selling commission schedule shown below is from a well-known online discount brokerage firm.? Taking into consideration the buying and selling commissions in the schedule find annual rate of interest earned by each investment? Transaction Size Commission Rate $0...

### Finance

A firm has $3 million market value and it sells preferred stock with a par value of $100. If the coupon rate on the preferred stock is 9% and the preferred stock trades at $95, what is the cost of preferred stock financing?