Solved: Computing the value of investment in stock, Finance Basics

+44 141 628 6080
[email protected]

Computing the value of investment in stock

You own a $210,000 portfolio that is invested in stock A and B. The portfolio beta is equal to the market beta. Stock A has an expected return of 18.7 percent and has a beta of 1.42. Stock B has a beta of 0.88. What is the value of your investment in stock A?

Solution Preview :

Prepared by a verified Expert

Finance Basics: Computing the value of investment in stock

Reference No:- TGS0672230

Now Priced at $5 (50% Discount)

Recommended (98%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Find market value of stock if dividends grow at same rate

If the required rate of return is 18 percent, what is the market value of this stock if dividends grow at the same rate as the firm?

Q : Determining the present value of cash flow stream

Herm Mueller has invested in a fund that will provide him a cash flow of $ 11,700 for the next 20 years. if his opportunity cost is 8.5%, what is the present value of this cash flow stream?

Q : What accounting entry would be necessary

If impairment is recorded in 2013 and subsequently the value of the building increases in 2014 so that the market value exceeds the book value, should the book value of the building be increased at that time?

Q : What is the amount of dividends received by the common

Art, Inc., has 2,500 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding from December 31, 2013 through Dec. 31, 2015.

Q : Computing the value of investment in stock

Q : How to work for dynamo corporation

After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7

Q : How much should each partners capital change

In their partnership agreement, Justin, Sarah, and Betsy agreed that Justin should receive a salary allowance of $35,000 per year and that Sarah should receive a salary allowance of $30,000 per year.

Q : Find current stock price if equired rate of return is given

The forecast for the stock price a year from now is $37.50. If the required rate of return is 14 percent, what is the current stock price? Assume constant growth.

Q : How to operates in four different divisions

The following information relating to each segment is available for 2013. Sales revenue Operating profit Identifiable assets A $11,200 $- $72,800 B $630,000 $168,700 $511,000 C $75,600.

1926882

Questions
Asked

3,689

Active Tutors

1417751

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Computing the value of investment in stock

Reference No:- TGS0672230

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Find market value of stock if dividends grow at same rate

Q : Determining the present value of cash flow stream

Q : What accounting entry would be necessary

Q : What is the amount of dividends received by the common

Q : Computing the value of investment in stock

Q : How to work for dynamo corporation

Q : How much should each partners capital change

Q : Find current stock price if equired rate of return is given

Q : How to operates in four different divisions

Medication for postoperative nausea and vomiting

Child prescribed prednisone for exacerbation of asthma

What if a parent of hispanc origin informs nurse of plans

How health care reimbursement is delivered

How to improve overall health of elementary school children

How would you instruct the patient to taper off clonazepam

How to prevent interference with an intravenous infusion

Solution Preview :

Prepared by a verified Expert

Finance Basics: Computing the value of investment in stock

Reference No:- TGS0672230

Recent Questions Asked Finance Basics

Q : Find market value of stock if dividends grow at same rate

Q : Determining the present value of cash flow stream

Q : What accounting entry would be necessary

Q : What is the amount of dividends received by the common

Q : Computing the value of investment in stock

Q : How to work for dynamo corporation

Q : How much should each partners capital change

Q : Find current stock price if equired rate of return is given

Q : How to operates in four different divisions

Asked Questions