1. If you own 50 shares and the company declared a 22% stock dividend, how...
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Finance
1. If you own 50 shares and the company declared a 22% stock dividend, how much would you receive?
Assume you think a boom and a recession are equally likely to happen, a 50-50 chance of either.
State of Economy
Probability of State of Economy
Security Returns if State Occurs
Security L
Security U
Recession
0.50
-20%
30%
Boom
0.50
70%
10%
Based on the above information, what is a standard deviation for Security L?
3.
Assume you think a boom and a recession are equally likely to happen, a 50-50 chance of either.
State of Economy
Probability of State of Economy
Security Returns if State Occurs
Security L
Security U
Recession
0.50
-20%
30%
Boom
0.50
70%
10%
Based on the above information, what is a standard deviation for Security U?
Select one:
4. You observe a stock price of $82.45. You expect a dividend growth rate of 2% and the most recent dividend just paid was $8.25. What is required return?
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