1. Selling Stock with Commissions At your full-service brokerage firm, it costs $126 per stock trade. How much money do you receive after selling 300 shares of Ralph Lauren (RL), which trades at $85.19?
2. Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $2.00 per share in 5 years. This dividend will grow at 15 percent indefinitely. Using a 17 percent discount rate, compute the value of this stock.
3. Portfolio Weights If you own 300 shares of Air Line Inc at $19.25, 210 shares of BuyRite at $10.2, and 400 shares of Motor City at $46.25, what are the portfolio weights of each stock?
4. Portfolio Return At the beginning of the month, you owned $11,300 of Company G, $11,100 of Company S, and $17,200 of Company N. The monthly returns for Company G, Company S, and Company N were 10.4 percent, -1.36 percent, and 9.4 percent. What is your portfolio return? (Round intermediate calculations to 2 decimal places.)
5. Portfolio Beta You own $1,900 of City Steel stock that has a beta of 1.67. You also own $6,700 of Rent-N-Co (beta = 1.97) and $5,700 of Lincoln Corporation (beta = 1.07). What is the beta of your portfolio (closest to)?