47.
KO stock is trading at $55 per share the day before the ex-dividend date. KO is going to pay a $2 dividend. Where would you expect KO stock to trade on the ex-dividend date, if nothing else changes?
a. |
$55 |
|
b. |
$57 |
|
c. |
$53 |
|
d. |
$110 |
part b 48
Year |
Cash Flow |
0 |
-12,000 |
1 |
4000 |
2 |
5000 |
3 |
6000 |
4 |
6000 |
Given the cash flows in the table above, what is the projects Payback Period (assume cash flows are received evenly during the year)?
a. |
1.4 years |
|
b. |
2.2 years |
|
c. |
2.5 years |
|
d. |
4 years |
part c (55)
ToysToys Corporation wants to borrow $500,000 for one month. It uses its inventory as collateral for a 16% (APR compounded monthly) loan, under a warehouse arrangement where the warehouse fee is $14,000, paid at the end of the month. What is the EAR of this loan for ToysToys?
a. |
4.1% |
|
b. |
15.4% |
|
c. |
17.2% |
|
d. |
62.6% |
Q47 - Option C
Explanation: The stock price down by the same amount of dividend of $2 at ex dividend date.
Stock price = $55-$2
= $53
Q48 - Option C
Explanation: Payback period means in how much time cash flows cover the investment
= Year 1 + Year 2 + Year3/2 = $9,000 + $6,000/2 =$12,000
So, 2.5 years
Hi Student, we are allowed to do one question or 4 parts of the
same question which are interlinked. However, i have completed two
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