g. Explain why the 52-week high and 52-week low numbers are the same in both charts. Over the course of the week, no prices were high enough to become a new 52-week high, nor low enough to become a new 52-week low. h. Examine the closing price of Discovery Inc. on October 27. One year earlier, one share closed at 30% higher than that amount. What was the closing price one year earlier? $54.60

g. Explain why the 52-week high and 52-week low numbers are the same in both charts. Over the course of the week, no prices were high enough to become a new 52-week high, nor low enough to become a new 52-week low. h. Examine the closing price of Discovery Inc. on October 27. One year earlier, one share closed at 30% higher than that amount. What was the closing price one year earlier? $54.60

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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R. You bought 100 shares of DataPoint for $25 per share and it is currently selling for $40 per share. Assume that the stock eventually declines to $31. In answering the following, please ignore brokerage commissions, margin interest costs, and other transaction costs Calculate your percentage Holding Period Return at the $31 price assuming that you placed a stop-sell order at $40 per share and the order executed at that price a. 60% b. 24% c. 37.50% d. 51.61%
Margoles Publishing recently completed its IPO. The stock was offered at $14.00 per share. On the first day of trading, the stock closed at $19.00 per share. a. What was the initial return on Margoles? b. Who benefited from this underpricing? Who lost, and why? a. What was the initial return on Margoles? The initial return was 1%. (Round to one decimal place.) b. Who benefited from this underpricing? (Select the best choice below.) OA. Owners of other shares outstanding (not part of the IPO) and underwriters. O B. The company and underwriters. O C. Investors who bought shares at the IPO price of $14.00/share and investment banks (indirectly from future business) O D. The company and owners of other shares outstanding (not part of the IPO). Who lost? (Select the best choice below.) 0 A. Owners of other shares outstanding (part of the IPO) O B. Owners of other shares outstanding (not part of the IPO) O C. Both of the above. 0 D. Investors who bought shares at the IPO price of…
Felton Publishing recently completed its IPO. The stock was offered at $14.07 per share. On the first day of trading, the stock closed at $19.97 per share. a. What was the initial return on Felton? b. Who benefited from this underpricing? Who lost, and why?
Assume the company earns $.70 per share. What was yesterday’s closing price? (Round your answer to the nearest cent.) 52 weeks LO Stock (Sym) DIV YLD % PE Volume (100's) Close Net Change 8.38 Shoreline HLT 0.08 13,411 11.19 − 0.25 Yesterday’s closing price=
NAME Herbalife Nutrition Herc Holdings Heritage Insurance Holdings HRTG Hersha Hospitality Trust CIA HT Hershey HSY HTZ SYMBOL CLOSE NET CHG 57.94 -1.39 26.86 -0.71 14.57 -0.38 Hertz Global Holdings Hess Corp. Hess Midstream Partners HLF HRI HES HESM Hewlett Packard Enterprise HPE 16.59 -0.16 106.24 0.80 -0.77 13.27 42.39 0.15 17.87 0.25 13.18 -0.28 VOLUME DIV YIELD P/E 1,149,773 60.41 389,826 72.99 81,929 19.15 732,879 24.16 1,145,889 114.63 52 WK 52 WK HIGH LOW 34.16 1.20 2.07 47.75 -1.71 24.16 3.10 3.35 12.85 0.24 1.65 22.01 -1.02 2,965,201 25.14 16.50 1.12 6.75 ...dd -5.42 89.10 2.89 2.72 22.00 -0.88 13.01 2.24 -2.78 35.59 1.00 2.36 ...dd 47,899 24.51 16.17 1.43 8.00 14.60 12.09 0.45 3.41 11.46 5,969,511 74.81 11,756,695 19.48 **** **** YTD %CHG Figure 2.8 Listing of stocks traded on the New York Stock Exchange Source: WSJ Online, January 4, 2019. 4.67 5.24 -0.23
Company XYZ closed at $105.03 per share with a P/E ratio of 11.14. Answer the following questions. How much were earnings per share? Does the stock seem overpriced, underpriced, or about right given that the historical P/E ratio is 12-14? a b. a. How much were earnings per share? (Round to the nearest cent as needed.) b. Based on the fact that Company XYZ stock historically trades at an average P/E ratio of 12-14, does the stock price seem overpriced, underpriced, or about right? About right Underpriced Overpriced
Using the information for Hickory Fast Foods Inc. presented in the table below, determine the following: 1. Percentage of change in the stock's price since the beginning of the year. 2. Difference between the closing price today and the closing price on the previous trading day. 3. Price-earnings ratio. Year-to-Date % Change 12.13% EPS $2.27 52-Week Hi $51.78 PE Ratio 20.30 52-Week Lo $32.59 Volume 3,000,000 Dividend $0.55 Close Price $46.09 Yield Percentage 1.19% Net Change 0.42 1. Percentage of change: ? 2. Difference: 3. Price-earnings ratio: %24
Rob Thomas Traders opened an account to short-sell 1,000 shares of WeWork at $60. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of WeWork has risen from $60 to $76, and the stock has paid a dividend of $2.75 per share. a. What is the remaining margin in the account? b. If the maintenance margin requirement is 35%, will Rob Thomas Traders recieve a margin call?
Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid : a dividend of $2 per share.a. What is the remaining margin in the account?b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?c. What is the rate of return on the investment?
a) Suppose you look in the newspaper and see ABC trading at $50 per share. Calls on ABC with one month to expiration and an exercise price of $45 are trading at $6.50 each. Puts on ABC with one month to expiration and an exercise price of $55 are trading at $3.50 each. Are these prices reasonable? Explain. b) Sarwar Company stock has a current market price of $47.60 per share. The one-year call on this stock with a strike price of $45 is priced at $3.20 while the one-year put with a strike price of $45 is priced at $.15. What is the risk-free rate of return?
On Friday, August 28, 2020, the stock of Tesla Inc. closed at $2,217.99 per share. On the following Monday, the company split its stock 3-for-1, and the stock price traded for $741.42 per share. Were Tesla shareholders better off, worse off, or in the same position after the split compared with before? What return did they earn from Friday to Monday? The price of Tesla immediately after the split is predicted to be $(enter your response here) per share. What calculation should I use to figure out the answer?
A closed-end investment company has a net asset value of $12.75. A year ago the shares sold for a 24 percent discount but that discount has narrowed (that is, declined) to 12 percent. If the company distributed $1.05 a share, what was the return on an investment in the shares before considering commissions on the purchase? Round your answer to two decimal places. %

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