Use the data in the table below to calculate A, B, C, and D. (hint: recall spreadsheet 6.6) Risk-free Rate Expected Return Stocks Expected Return Bonds Stdev Stocks Stdev Bonds Correlation(S, B) 4% 12% 6% 24% 9% -0.10   Weight Stocks Weight Bonds Expected Return Portfolio Stdev Portfolio Sharpe Ratio 0.6 A B C D

What is the expected return of a stock that trades at $61.00 today and is expected to trade at $63.75 and pay a $1.80 dividend at the end of the year?

Define intrinsic value of a firm. Why might intrinsic value differ from market price?

Find PVGO given the following data: E1 $9.65 D0 $8.19 D1 ?

What does it mean to use comparables to value a company?

A company intends to pay a year-end dividend of $2.76 per share.  Currently, the stock is trading at $113.00 per  share. Assume a market cap rate of 13.97%. Find the growth rate, g.  

This course does not provide extra credit opportunities. To receive the highest grade possible in the course, students should focus on completing every assignment in full (as according to the assignment instructions) and submitting each assignment by the posted deadline. 

Where in the course Canvas site can students access the course modules?

Two firms have identical financial statements except that XYZ, Inc has a D/E ratio of 1.0 and ABC, Inc has no debt.  Which company’s shares would you rather own in a recession and why?

A firm paid its annual dividend of $4.97 and is expected to grow at 3.73% for the next two years and then at 6.04% in perpetuity.  If the required return is 13.60%, find V0?