Question 1. What is the market price for Wal-Mart common stock?
Question 2. What is the Beta for Wal-Mart?
Question 3. If the market yield on S&P 500 stocks is 10.0% and 90 day U.S Treasury yield is 0.5%, what is Wal-Mart's required return?
Question 4. What is the dividend that was just paid? Has the stock had any splits? If so, when?
Question 5. What is the dividend payout ratio?
Question 6. What is the (forward annual) dividend yield?
Question 7. What is the (trailing) price-earnings ratio?
Question 8. If earnings are expected to grow 1%, what would be the value of the stock? Use Do=$4.00
Question 9. At the market price, and given the value you calculated, should you buy Wal-Mart stock? Why?
Question 10. What is the market value of Wal-Mart's equity?
Question 11. Now do the same thing for Target Corp. What is the Beta for Target?
Question 12. What is the market price of Target common stock (for one share)?
Question 13. If the market yield on S&P 500 stocks is 10.00% and 90-day U.S Treasury yield is .5% what is Target's required return?
Question 14. What is the dividend?----------------- By what date did you have to own the stock to receive the last dividend?
Question 15. What is the dividend payout ratio?
Question 16. What is the (forward annual) dividend yield?
Question 17. What is the (trailing annual) price- earnings ratio?
Question 18. If earnings are expected to drop by 10%, what would be the value of the stock? Use D1= $2.50
Question 19. At the market price, and given the value you calculated, should you buy Target stock? Why
Question 20. Which stock has more risk, Wal-Mart or Target? Explain why.
Question 21. Now look up the Target corporate bond maturing 15-August-2010. Print out the info on this bond.
Question 22. What is its price? And what is its rating?
Question 23. What is the YTM? (no calculation)
Question 24. What is the coupon rate?
Question 25. How often do you get paid interest?
Question 26. What is the amount of annual interest you get for owning one bond?
Question 27. Suppose interest rates change to 4%, what would happen to the price of the Target bond?