Please help!
1. An investor bought 100 shares of Venus Corporation common stock 1 year ago for $40 per share. She just sold the shares for $44 each, and during the year, she received four quarterly dividend checks for $40 each. She expects the price of the Venus shares to fall to about $38 over the next year. Calculate the investorâs realized percentage holding period return.
1. An investor bought 10 Ellis Industries, Inc. long-term bonds 1 year ago, when they were first issued by the company. In addition, he bought 200 shares of the com- panyâs common stock at the same time for $30 per share.He paid $1,000 each for the bonds, and today, the bonds are selling at $950 each (long-term interest rates have increased slightly over the past year). The bonds have a stated interest rate of 12 percent per year. The investor received an interest payment equaling $60 per bond 6 months ago and has just received another $60 per bond interest payment. Calculate the investorâs percentageholdingperiodreturnforthe1yearhehasheld the bonds.
Please help!
1. An investor bought 100 shares of Venus Corporation common stock 1 year ago for $40 per share. She just sold the shares for $44 each, and during the year, she received four quarterly dividend checks for $40 each. She expects the price of the Venus shares to fall to about $38 over the next year. Calculate the investorâs realized percentage holding period return.
1. An investor bought 10 Ellis Industries, Inc. long-term bonds 1 year ago, when they were first issued by the company. In addition, he bought 200 shares of the com- panyâs common stock at the same time for $30 per share.He paid $1,000 each for the bonds, and today, the bonds are selling at $950 each (long-term interest rates have increased slightly over the past year). The bonds have a stated interest rate of 12 percent per year. The investor received an interest payment equaling $60 per bond 6 months ago and has just received another $60 per bond interest payment. Calculate the investorâs percentageholdingperiodreturnforthe1yearhehasheld the bonds.
Related questions
Suppose the Schoof Company has this book value balance sheet:
| Current assets | $30,000,000 | Current liabilities | $20,000,000 | |||
| Fixed assets | 70,000,000 | Notes payable | $10,000,000 | |||
| Long-term debt | 30,000,000 | |||||
| Common stock (1 million shares) | 1,000,000 | |||||
| Retained earnings | 39,000,000 | |||||
| Total assets | $100,000,000 | Total liabilities and equity | $100,000,000 |
The notes payable are to banks, and the interest rate on this debt is 9%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 7%, and a 20-year maturity. The going rate of interest on new long-term debt, rd, is 10%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $54 per share. Calculate the firm's market value capital structure. Do not round intermediate calculations. Round your answers to two decimal places.
Suppose the Schoof Company has this book value balance sheet:
| Current assets | $30,000,000 | Current liabilities | $10,000,000 | |||
| Fixed assets | 50,000,000 | Long-term debt | 30,000,000 | |||
| Common stock | ||||||
| (1 million shares) | 1,000,000 | |||||
| Retained earnings | 39,000,000 | |||||
| Total assets | $80,000,000 | Total claims | $80,000,000 |
The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 10%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 9%, and a 15-year maturity. The going rate of interest on new long-term debt, rd, is 12%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $62 per share. Calculate the firm's market value capital structure. Round your answers to two decimal places.
| Short-term debt | $ | % | ||
| Long-term debt | $ | % | ||
| Common equity | $ | % | ||
| Total capital | $ | % |
