Question

During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share, was...

During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share, was expected to yield 4% per year in dividends, and had a risk index of 3.0 per share, while CNA Financial Corp. (CNA) stock cost $40 per share, was expected to yield 2.5% per year in dividends, and had a risk index of 2.0 per share.† You have up to $25,000 to invest in these stocks, and would like to earn at least $796 in dividends over the course of a year. (Assume the dividends to be unchanged for the year.) How many shares (to the nearest tenth of a unit) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio?

Toronto Dominion bank - answer goes here (shares)

CNA Financial Corp - ansers goes here (shares)

can you please answer just those two parts and answer it in the format that I have above in bold please and thank you

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate the total return percentage achieved for each individual stock (Toronto-dominion bank and suncor energy) from...
Calculate the total return percentage achieved for each individual stock (Toronto-dominion bank and suncor energy) from the day you selected the stock to the present or most recent business day.( 5th june till date) Use the formula End Share Price – Beginning Share Price + Dividends Received (if any)/Beginning Share Price.
zoe bought shares of stock on january 1 at a price of $43.00 per share. During...
zoe bought shares of stock on january 1 at a price of $43.00 per share. During the year, zoe received four quarterly dividends of $1.80 per share. on december 31, zoe checked the price of the stock and it was $47.50. what is the total dollar return that zoe received for the year? what is the dividend yield that zoe received? what was zoe's capital gains yield? what was the total yield for the year?
Common stock is trading at $45 per share The 2020 dividend has dropped to $5.00 per...
Common stock is trading at $45 per share The 2020 dividend has dropped to $5.00 per share Dividends are expected to grow by 15% per year in 2021, 2022, and 2023. The 2024 dividend is expected to be 5% higher than that of 2023, and dividends are expected to grow at the rate of 5% p.a. thereafter into the indefinite future Cost of equity capital is 20% 1.  valuation would you place on the company's common stock? 2. Is the stock...
Exactly one year ago, Harv bought 500 shares of Primer Corp stock for $20.75 per share....
Exactly one year ago, Harv bought 500 shares of Primer Corp stock for $20.75 per share. He plans on selling all of the shares today at the current market price of $22.50 per share. Over the last year, Primer Corp. paid out dividends of $0.75 per share on its common stock. What is Harv’s holding period return for the year on Primer Corp. stock? Submit your answer as a percentage and round to two decimal places. Describe and interpret the...
1) A year ago you bought 100 shares of Bradley Corp. common stock for $32 per...
1) A year ago you bought 100 shares of Bradley Corp. common stock for $32 per share. During the year, you received dividends of $2.50 per share. The stock is currently selling for $33.50 per share. What was your total dividend income during the year? How much was your capital gain? Your total dollar return? 2) Suppose you expect the Bradley Corporation common stock in Problem 1 to be selling for $33 per share in one year, and during the...
You are analyzing stock of Azure Corp. Firm paid a dividend of $3 per share and...
You are analyzing stock of Azure Corp. Firm paid a dividend of $3 per share and its dividends are expected to grow at 7% in future. Currently, similar risks stocks have required rate of return of 10%. Using this information:     Calculate the Present value of the stock. (hint: dividend growth model)     A year later, a broker offers to sell you the same stock for $73. Most recent dividend paid was $3.21 and growth rate is still 7%. If...
Janzy shares are currently selling at $5.50 each. Last year's dividends were $0.55 per share. The...
Janzy shares are currently selling at $5.50 each. Last year's dividends were $0.55 per share. The dividends are expected to grow at 7.5% per year for the next two years and then at a more gradual rate of 6% a year indefinitely. You wish to earn a return of 10% per year. Determine the value of the stock today. (Please explain the answer in detail, thank you)
You sold short 400 shares of a stock for $60 per share. Your broker’s initial margin...
You sold short 400 shares of a stock for $60 per share. Your broker’s initial margin requirement is 60%. The broker’s maintenance margin requirement is 35%. You initially want to put up as little capital (money) as possible to support the short sale. A.) How much capital must you have in your account before you can make the short sale? B.) If the stock price goes to $70 per share, will you receive a margin call? Show your work to...
There are 2 million common shares of stock outstanding, currently trading for $35 per share. The...
There are 2 million common shares of stock outstanding, currently trading for $35 per share. The most recent dividend paid was $4 per share. Dividends are expected to increase by 2% per year for the foreseeable future. There are 25,000 bonds outstanding with a coupon rate of 5% that mature in eight years. The face value of these bonds is $1000, coupon payments are made annually, and the yield to maturity is 4%. There are 75,000 bonds outstanding with a...
Stock ABC is trading at $50 per share. The stock has an expected year-end dividend of...
Stock ABC is trading at $50 per share. The stock has an expected year-end dividend of $5 (i.e., D1=$5), which is expected to grow at a constant rate throughout time (g). The stock’s return has a covariance with the market portfolio return of 0.06. The standard deviation of the market portfolio is 0.2. The risk free rate is 6%, and the market risk premium is 8%. If you believe that the stock is efficiently priced, what would be your forecast...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT