Dividends

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Time Value of Money

1. Housing rates have rapidly increased, and you have decided to save to buy your first house. You expect to save $1500 per month at the end of each month for the next 3 years, investing these funds in a mutual fund you expect to earn 6.5% interest, compounded monthly. At the end of three years of savings, you will buy the house with your savings, and use the $1500 per month as your mortgage payments. If interest rates on mortgages are 7% compounded monthly in three years, and you will take a 30-year mortgage, paying at the beginning of each month. a. How much of a mortgage can you obtain given the above information? b. How much of a down payment will you have saved to buy your house in... click for more

Portfolio

A portfolio that combines the risk-free asset and the market portfolio has an expected return of 25 percent and a standard deviation of 4%. The risk-free rate is 5%, and the expected return on the market portfolio is 20%. Assume the capital-asset-pricing model holds. What expected rate of return would a security earn if it had a 0.5 correlation with the market portfolio and a standard deviation of 2%?

Dividend Computations

Dividend Computations Reiner Wholesale Merchandise had 20,000 shares of 5%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2003. These data apply to each of the independent situations below. 1. Assuming that total dividends declared in 2003 were $35,000 and that the preferred stock is not cumulative. Determine the total of 2003 dividends the common stockholders should receive. 2. Assuming that total dividends declared in 2003 were $80,000 and that the preferred stock is cumulative with two years' preferred dividends in arrears on December 31, 2002. Determine the total 2003 dividends the preferred stockholders should receive.... click for more

Five problem of Consumer Mathematics

1. 2 sizes of Jam 14 ounces for $1.29 or 32 ounces for $2.99 Which is the better buy? 2. The price of bread increased $1.39 to $1.49. To the nearest tenth of a percent what is the increase? 3. A college had a 1.5% decrease in students. If there were 22,400 students before the decrease how many students are there now? 4. Shelley borrowed $722.50 to buy a computer. If the simple interest is 8% per year. What are the monthly payments for 18 months? I=PRT 5. A women purchases a home from for $96,000. Find the mortgage if the down payment is 15% of the purchase price