Finance Mba - 1470 Words

1. Calculating Returns Suppose a stock had an initial price of $84 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $96. Compute the percentage total return. The percentage total return is (96-84+1,40)/84=0,1595=15,95% 2. Calculating Yields In Problem 1, what was the dividend yield? The capital gains yield? Capital gain yield: (96-84)/84=0,1429=14,29% Dividend yield: 1,40/84=0,167=1,67% 3. Calculating Returns and Variability You’ve observed the following returns on Yasmin Corporation’s stock over the past ï ¬ ve years: 19 percent, -13 percent, 24 percent, 31 percent, and 8 percent. a. What was the arithmetic average return on Yasmin’s stock over this ï ¬ ve-year period? b.†¦show more content†¦large company standard deviation: 24,11 t bills standard deviation: 1,23 c. -14.69-7.29) + (-26.47-7.99) + (37.23 – 5.87) + (23.93 – 5.07) + (-7.16 – 5.45) + (6.57- 7.64) = -19.9% Arithmetic average risk premium: -19.90/6= -3.32% Standard deviation of the risk premium: 24.91 6. Systematic versus Unsystematic Risk Indicate whether the following events might cause stocks in general to change price, and whether they might cause Big Widget Corp.’s stock to change price. Provide a rationale for each response. a. The government announces that inï ¬â€šation unexpectedly jumped by 2 percent last month. Since it is an unexpected systematic event, prices will be most likely to drop. b. Big Widget’s quarterly earnings report, just issued, generally fell in line with analysts’ expectations. Since this is an expected event, the price will remain constant. c. The government reports that economic growth last year was at 3 percent, which generally agreed with most economists’ forecasts. Since new intel are in line with the previous forecasts, price will remain constant. d. The directors of Big Widget die in a plane crash. Since the event couldn’t be expected and would change the general direction of the company, the price will be likely to drop. e. Congress approves changes to the tax code that will increase the top marginal corporate tax rate. The legislation had been debated for the previousShow MoreRelatedMba Module - Finance for Managers5036 Words   |  21 PagesCourse: Finance for Managers Course code: CONTENTS 1. Report to Directors of Bramble Waste Management a. Introduction b. Net Present Value c. Internal Rate of Return d. Tender Price for weekly Collection e. Tender Price for fortnightly Collection f. Other Financial Considerations 2. Report to Directors of Newtownabbot Borough Council a. Introduction b. Evaluation of the financial strengths and weaknesses of the three businesses short listed Read MoreObtaining an MBA in Finance Essay822 Words   |  4 Pagesespecially in finance and in business. Every business entity is having separate finance department which handles all the financial transactions and requirements of the company. This clearly discloses about the great opportunity available in the finance industry and motivates for higher studies in finance and in business administration. Finance is my field of interest and I wanted to pursue my career in this sector. In order to achieve my goal I will pursue MBA specializing in Finance, which is mostRead MoreMba Finance Assignment2536 Words   |  11 Pagesshorter terms to collect its receivables and pay its debts Debt to equity ratio: Debt to equity ratio is used for researching the capital structure of a company. It indicates what proportion of equity and debt the company is using to finance its assets. 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