SlideShare a Scribd company logo
1 of 1
Download to read offline
thomas has one share of stock and one bond. the total value of the two securities is $1,145.20. the
bond has a YTM of 12.73 percent, a coupon rate of 8.58 percent, and a face value of $1,000.00
pay semi-annual coupons with the next one expected in 6 months, and matures in 6 years. The
stock pays annual dividends that are expected to grow by 4.98 percent per year forever. The next
dividend is expected to be $12.14 and paid in 1 year. What is the expected return for the stock?

More Related Content

More from alankareyecare

The question What is the probability that non-anthropogenic causes .pdf
The question What is the probability that non-anthropogenic causes .pdfThe question What is the probability that non-anthropogenic causes .pdf
The question What is the probability that non-anthropogenic causes .pdf
alankareyecare
 

More from alankareyecare (20)

this is all the information given 2. (4 PTS) Under the 1990 Farm Bi.pdf
this is all the information given  2. (4 PTS) Under the 1990 Farm Bi.pdfthis is all the information given  2. (4 PTS) Under the 1990 Farm Bi.pdf
this is all the information given 2. (4 PTS) Under the 1990 Farm Bi.pdf
 
This exercise refers to the experiment of tossing four coins. What i.pdf
This exercise refers to the experiment of tossing four coins. What i.pdfThis exercise refers to the experiment of tossing four coins. What i.pdf
This exercise refers to the experiment of tossing four coins. What i.pdf
 
The volume of air within stiff, cartilaginous conduits of a respirat.pdf
The volume of air within stiff, cartilaginous conduits of a respirat.pdfThe volume of air within stiff, cartilaginous conduits of a respirat.pdf
The volume of air within stiff, cartilaginous conduits of a respirat.pdf
 
There are several commonalities and differences between the role and.pdf
There are several commonalities and differences between the role and.pdfThere are several commonalities and differences between the role and.pdf
There are several commonalities and differences between the role and.pdf
 
there is no figure The brain organizes touch infomation in a particu.pdf
there is no figure The brain organizes touch infomation in a particu.pdfthere is no figure The brain organizes touch infomation in a particu.pdf
there is no figure The brain organizes touch infomation in a particu.pdf
 
There has been a great deal of ground subsidence in California�s Cen.pdf
There has been a great deal of ground subsidence in California�s Cen.pdfThere has been a great deal of ground subsidence in California�s Cen.pdf
There has been a great deal of ground subsidence in California�s Cen.pdf
 
The traditional role of data architects has not changed. They are tr.pdf
The traditional role of data architects has not changed. They are tr.pdfThe traditional role of data architects has not changed. They are tr.pdf
The traditional role of data architects has not changed. They are tr.pdf
 
There are various approaches in regards to how costs are allocated a.pdf
There are various approaches in regards to how costs are allocated a.pdfThere are various approaches in regards to how costs are allocated a.pdf
There are various approaches in regards to how costs are allocated a.pdf
 
There are two coins in the bag one coin is fair (shows T and H with.pdf
There are two coins in the bag one coin is fair (shows T and H with.pdfThere are two coins in the bag one coin is fair (shows T and H with.pdf
There are two coins in the bag one coin is fair (shows T and H with.pdf
 
The widespread flooding caused by Hurricane Harvey resulted in treme.pdf
The widespread flooding caused by Hurricane Harvey resulted in treme.pdfThe widespread flooding caused by Hurricane Harvey resulted in treme.pdf
The widespread flooding caused by Hurricane Harvey resulted in treme.pdf
 
There are 8 black balls and 8 red balls in an urn. If 5 balls are dr.pdf
There are 8 black balls and 8 red balls in an urn. If 5 balls are dr.pdfThere are 8 black balls and 8 red balls in an urn. If 5 balls are dr.pdf
There are 8 black balls and 8 red balls in an urn. If 5 balls are dr.pdf
 
The workers union at a certain university is quite strong. About 94.pdf
The workers union at a certain university is quite strong. About 94.pdfThe workers union at a certain university is quite strong. About 94.pdf
The workers union at a certain university is quite strong. About 94.pdf
 
There are 9 black balls and 8 red balls in an urn. If 5 balls are dr.pdf
There are 9 black balls and 8 red balls in an urn. If 5 balls are dr.pdfThere are 9 black balls and 8 red balls in an urn. If 5 balls are dr.pdf
There are 9 black balls and 8 red balls in an urn. If 5 balls are dr.pdf
 
The Wealth Management division at TD Bank Canada is spearheading a n.pdf
The Wealth Management division at TD Bank Canada is spearheading a n.pdfThe Wealth Management division at TD Bank Canada is spearheading a n.pdf
The Wealth Management division at TD Bank Canada is spearheading a n.pdf
 
The utility that Ann receives by consuming food F and clothing C is .pdf
The utility that Ann receives by consuming food F and clothing C is .pdfThe utility that Ann receives by consuming food F and clothing C is .pdf
The utility that Ann receives by consuming food F and clothing C is .pdf
 
The question is regarding 12 Angry men CQ4 Interpersonally Who.pdf
The question is regarding 12 Angry men CQ4 Interpersonally Who.pdfThe question is regarding 12 Angry men CQ4 Interpersonally Who.pdf
The question is regarding 12 Angry men CQ4 Interpersonally Who.pdf
 
The question What is the probability that non-anthropogenic causes .pdf
The question What is the probability that non-anthropogenic causes .pdfThe question What is the probability that non-anthropogenic causes .pdf
The question What is the probability that non-anthropogenic causes .pdf
 
The quality of a soil is most directly related toGroup of answer .pdf
The quality of a soil is most directly related toGroup of answer .pdfThe quality of a soil is most directly related toGroup of answer .pdf
The quality of a soil is most directly related toGroup of answer .pdf
 
The term efficient markets refers to the idea that _______________..pdf
The term efficient markets refers to the idea that _______________..pdfThe term efficient markets refers to the idea that _______________..pdf
The term efficient markets refers to the idea that _______________..pdf
 
The time spent studying by students in the week before final exams f.pdf
The time spent studying by students in the week before final exams f.pdfThe time spent studying by students in the week before final exams f.pdf
The time spent studying by students in the week before final exams f.pdf
 

Recently uploaded

1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
QucHHunhnh
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
ZurliaSoop
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 

Recently uploaded (20)

Third Battle of Panipat detailed notes.pptx
Third Battle of Panipat detailed notes.pptxThird Battle of Panipat detailed notes.pptx
Third Battle of Panipat detailed notes.pptx
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docx
 
Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Magic bus Group work1and 2 (Team 3).pptx
Magic bus Group work1and 2 (Team 3).pptxMagic bus Group work1and 2 (Team 3).pptx
Magic bus Group work1and 2 (Team 3).pptx
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
PROCESS RECORDING FORMAT.docx
PROCESS      RECORDING        FORMAT.docxPROCESS      RECORDING        FORMAT.docx
PROCESS RECORDING FORMAT.docx
 
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
Micro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdfMicro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdf
 

thomas has one share of stock and one bond. the total value of the t.pdf

  • 1. thomas has one share of stock and one bond. the total value of the two securities is $1,145.20. the bond has a YTM of 12.73 percent, a coupon rate of 8.58 percent, and a face value of $1,000.00 pay semi-annual coupons with the next one expected in 6 months, and matures in 6 years. The stock pays annual dividends that are expected to grow by 4.98 percent per year forever. The next dividend is expected to be $12.14 and paid in 1 year. What is the expected return for the stock?