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Assume that it was purchased a year ago and that its income and capital gains distributions over the year have totalled $1.05 per share?
List the funds' holding period returns for the past year and their annual compound rates of return for the past three years.
Super Star's market-based holding period return for the year. Did the market premium/discount hurt or add value to the investor's return? Explain.
In light of Reverend Rob's long-term investment goals, do you think managed funds are an appropriate investment vehicle for him?
What factors in Tom's situation should be taken into consideration in the fund selection process?
Determine and justify an asset allocation to these four classes in light of your stated portfolio objectives and policies.
Use your annual HPR findings in part a to calculate the average HPR for each of the investment vehicles over the three-year period.
For each of the three years, determine the unrealised capital gains from the portfolio.
What are the total number of units, the average cost per unit, and the year-end portfolio value of each fund?
During the period he held the shares, the company paid him $200 in cash dividends. How much, if any, was the capital gain realised upon the sale of shares?
During the year, the fund distributed investment income dividends of $0.32 per share and capital gains dividends of $0.38 per share.
On 31 December 2011, Simon's portfolio had a market value of $250 000. Find the HPR on Simon's portfolio during the year ended 31 December 2011.
If you buy this share today at $87.50, what rate of return will you earn over the next 12 months if the price of the share rises to $110.00 .
You feel the share should trade at a P/E ratio of around 30 times earnings. Use the P/E approach to set a value on this share.
What do you think of his investment program? What do you see as its strengths and weaknesses?
Are share prices always (or nearly always) correctly set in the market? If so, does that mean little opportunity exists to find undervalued shares?
Briefly describe how technical analysis is used as part of the share valuation process.
Treasury securities are guaranteed by the Australian Government. Therefore, there is no risk in the ownership of such bonds.
Why do companies like to issue convertible securities? What's in it for them?
Zack buys a 10% corporate bond with a current yield of 6%. How much did he pay for the bond?
Now find the total return on this bond in Australian dollars. Did currency exchange rates affect the return in any way?
How much will you make on each bond if you buy it, hold it for one year and then sell it for $10 000 ?
A certain convertible bond has a conversion ratio of 21 and a conversion premium of 20%. The current market price of the underlying share is $40.
If comparably rated non-convertible bonds sell to yield 8%, what is the investment value of the convertible?
How much total income will this investment offer if, over the course of the next 12 months, the price of the share moves to $75.