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Nasdaq has which of the following characteristics?trading floorcomputer networkspecialist systemmultiple market makers

Comfort Ice Cream has plans to pay decreasing annual dividends of $1.75, $1.60, and $1.45 over the next three years, respectively. After that, the firm will increase the dividend by 4 percent each year. What is the value of this stock today at a discount rate of 12 percent? exam spreadsheet (8).xlsx

A long hedge is the addition of which one of the following to a short position in the underlying asset?

What is the difference in the value of one December heating oil contract between this day’s opening and closing prices? Contract Open High Low Close December, Heating oil, 40,000 gallons, $ and cents per gallons 3.5503 3.7444 3.6652 3.7222 December, Crude oil, 1,000 barrels, $ and cents per barrels 120.71 122.50 120.70 122.40 exam spreadsheet (8).xlsx

Which one of the following statements is correct concerning premium bonds?

Consider a bond with a coupon of 5.6 percent, ten years to maturity, and a current price of $1,057.70. Suppose the yield on the bond suddenly increases by 2 percent. Use duration to estimate the new price of the bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. Do not include the $ sign) exam spreadsheet (8).xlsx

A fully hedged stock portfolio will have a beta equal to which one of the following?

Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2019. Also assume that the firm’s equity beta is 1.60, the risk-free rate is 2.25 percent, and the market risk premium is 7 percent.           Dividends per share $ 2.10   Return on equity   9.50 % Book value per share $ 17.50       Earnings Cash Flow Sales 2019 value per share $ 5.00   $ 6.60   $ 25.65   Average price multiple   13.10     9.45     2.39   Forecasted growth rate   13.51 %   11.38 %   7.21 %   What is the sustainable growth rate for Beagle Beauties? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Do not include the % sign) exam spreadsheet (8).xlsx

A stock is currently selling for $38.50 a share and has a dividend yield of 1.75%. The risk-free rate is 3.5%. What is the 2-month futures price on this stock? exam spreadsheet (8).xlsx

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $71, $312, and $86, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index? Note: Do not round intermediate calculations. Round your answer to 5 decimal places. exam spreadsheet (8).xlsx