Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please answer the following questions 1) hackworth

Please answer the following questions 1) Hackworth Company's common stock just paid a dividend of...

90.2K

Verified Solution

Question

Finance

Please answer the following questions

1) Hackworth Company's common stock just paid a dividend of $1.75 at the end of last year. If investors require a 25% return and the annual growth rate in dividends is expected to be 6% in the foreseeable future, what should the market price of the stock be? Round to two decimal places.

2) One year ago, Daniel bought 400 shares of Bliona Inc. stock for $36.00 per share. Over the year, Bliona Inc. paid out a total of $6.00 per share in dividends on its common stock. Today Daniel sells all of his shares at the current market price, $32.00 per share. What is his holding period return over the year? Submit your answer as a percentage and round to two decimal places.

3) Lastimar Inc. $1,000 par value corporate bonds were issued on January 1, 2016 and mature on January 1, 2046. The bonds offer a 7.5% coupon rate paid semiannually and are currently selling in the market for $950. What is the bonds yield to maturity on January 1, 2024? Submit your answer as a percentage rounded to two decimal places. (Hint: how many years are there to maturity?)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students