An investor buys a stock on margin and holds the position for one year.

Shares purchased
Purchase price
Call money rate
Dividend
Leverage ratio
Total return on the investment

vốn ban đầu

Stock
A
B
C

Stock
A
B
 Jason Williams purchased 500 shares of a company at 032 per share. The stock was
bought on 75 percent margin. One month later, Williams had to pay interest on the
amount borrowed at a rate of 2 percent per month. At that time, Williams received a
dividend of 00.50 per share. Immediately after that he sold the shares at 028 per
share. He paid commissions of 010 on the purchase and 010 on the sale of the stock.
What was the rate of return on this investment for the one-month period?

Share
Purchase price
Margin
dividend
Selling price
Comission

equal-weighted index => total return of the

Able
Baker
Charlie
a market-capitalization-weighted index => price return

Security
MNO
QRS
XYZ
Q. The price return of the index is:
n analyst gathers the following data for a value-weighted index:

Security
A
B
C
Q. The return on the value-weighted index over the period is:

Number of shares
Purchase price per share
Leverage ratio
Commission
Position holding period
Sale price per share
Call money rate
Dividend

Stock
A
B
C

Security
X
Y
Z

Q. An investor borrows the maximum amount allowed by the initial margin requirement
of 40% to purchase 100 shares of a stock selling at $60 per share. If the investor sells
the stock when its price increases to $70 per share, her return before commissions
and interest will be closest to:

Security
A
B
C
Paul
Ann
Mary

Security
ABC
DEF
GHI

Company’s net income

Company’s equity at the beginning of the year
Company’s weighted average cost of capital (WACC)
Stock’s beta
Market risk premium
Risk-free rate
Fund manager’s required rate of return

Fiscal Year Ending

Net income
Total shareholders’ equity
Earnings per share in most recent year
Expected dividend growth rate
Dividend payout ratio
Stock’s beta
Market risk premium
Risk-free rate
Company’s weighted average cost of capital

Current dividend per share

Historical annual dividend growth rate
Expected annual dividend growth rate for the next three years
Expected stock value per share at the end of Year 3

Market price per share

Number of shares outstanding
Net income
Total common equity
Total annual dividend paid
Risk-free rate
Market risk premium
Beta
Assume the current dividend of a security is $9.50. The dividend
is expected to grow by 12% each year for two years and then 3%
afterwards. The required rate of return is 15%. The security’s
value is closest to:

Dividend

Q. A company has issued non-callable, non-convertible preferred

stock with the following features:
Par value per share: $10
Annual dividend per share: $2
Maturity: 15 years

An investor’s required rate of return is 8%, and the current

market price per share of the preferred stock is $25. By
comparing the estimated intrinsic value with the market price of
the preferred stock, the most likely conclusion is that the
preferred stock is:

A company’s series B, 8% preferred stock has the following features:

A par value of $50, and it pays quarterly dividends.
Its current market value is $35.
The shares are retractable (at par) with the retraction date set for
three years from today.
Similarly rated preferred issues have an estimated nominal required
rate of return of 12%.
Analysts expect a sustainable growth rate of 4% for the company’s
earnings.
The intrinsic value estimate of a share of this preferred issue is closest
to:
An analyst is attempting to value shares of the Dominion
Company. The company has just paid a dividend of $0.58 per
share. Dividends are expected to grow by 20 percent next year
and 15 percent the year after that. From the third year onward,
dividends are expected to grow at 5.6 percent per year
indefinitely. If the required rate of return is 8.3 percent, the
intrinsic value of the stock is closest to:
Hideki Corporation has just paid a dividend of ¥450 per share.
Annual dividends are expected to grow at the rate of 4 percent
per year over the next four years. At the end of four years, shares
of Hideki Corporation are expected to sell for ¥9000. If the
required rate of return is 12 percent, the intrinsic value of a share
of Hideki Corporation is closest to:
for one year.
700
22
4%
0.6 có
1.6 62.5%
12%

9625 sau khi bán

5.6666666667

Number of Shares Owned price BOP
500 40
320 50
800 30

Percent of Shares in 
Shares Outstanding Market Float
5,000 90
2,000 100
Current price 113
premium 3
Expire 120

500
32
75%
0.5
28
10

Beginning of End of Period
Period Price (€) Price (€)
10 12
20 19
30 30

Beginning of  End of Period 
Period Price (¥) Price (¥)
2,500 2,700
3,500 2,500
1,500 1,600
 Beginning of Period
Price (£) Shares
20 300
50 300
26 2,000

6000 0.0821917808
15000 0.2054794521
52000 0.7123287671
73000

0.4

500
28
3.33 1 đồng vốn tự có, bẩy lên thành 3.33 vốn đ
0.05
6
30
5%
0.4

Number of Shares Owned Beginning of Period Price p
500 40
320 50
800 30

Beginning of Period Price per 
Share ($) Market Cap ($ millions)
100 100
 200 150
110 300
410 550

255200
42.5333333333

2400
0.4166666667

Shares Outstanding Price at Beginning of Perio
5,000,000 10
2,000,000 20
1,500,000 30
60
20

1,000 19.7
 200 19.84
400 19.89
300 20.02
900
17930 19.9222222222

Beginning of  End of Period
Period Price (£) Price (£)
25 27
35 25
15 16
75 68
25 22.6666666667
-0.0933333333
$20 million
$140 million
10.75%
1.8
5.25% 12.9500%
3.50%

2010 2011
$1,230,000 $1,414,500
11,000,000 11,550,000
 2 1.2612
5.10% 18.2782608696
60%
1.5
5.60%
4.20%
12.00%

3
4% 3.12
8% 28.3636363636
33

$37.80
1,000,000
$5,250,000
$35,000,000
'01,512,000
2.60% 11.00%
8.00%
1.05
 9.5
18.262

2.08
Year Earnings per Share
2011 3.2
2010 3.6
2009 2.44
2008 2.08
2007 2.76
2006 2.25

Earnings per share, 2013 2.5

Dividend payout ratio, 2013 60%
Dividend growth rate expected
during 2014 and 2015 25%
Dividend growth rate expected after
2015 5%
Investors’ required rate of return 12%

Year Earnings per Share ($)
2014 3.2
2013 3.6
2012 2.44
2011 2.5

Current dividend per share 2.4

Dividend growth rate expected
during Years 1 to 2 20%
Dividend growth rate expected from
Year 3 onward 4%
Company’s weighted average cost
of capital 13%
Required rate of return on equity 15%

Current price per share € 22.56

Current annual dividend per share € 1.60

Annual dividend growth rate for
Years 1–4 9.00%
Annual dividend growth rate for
Years 5+ 4.00%
Required rate of return 12%

y1 y2
20% 15%
0.696 0.8004
 4% 468

6 109
5 9
4 9
3 9
2 0
1 0

Par value 100

Annual coupon rate 8%
Coupon payment frequency Semiannual
Coupon payment dates 15 May and 15 November
Maturity date 15-Nov-17
Day count convention Actual/Actual
Annual yield to maturity 5.50%

price on 15/7/2014

giá vào ngày 15/5 111.22

15/5 đến ngày 15/7 61
full price 112.052537198
AI 1.3406593407
vay
37.5%

10780 409.5
10370.5
14.815

16555

966

price EOP Dividend
37 2 300 -0.025 -0.00833333
52 1.5 300 0.07 0.023333333
34 0 300 0.133333333 0.044444444
0.059444444

price BOP price EOP Dividend Market fl

40 45 1 4500
68 60 0.5 2000
 -5
-7.1428571429
17.8571428571

Vốn ban đầu 12010 -0.1532056619

Giá bán -1840
80
-0.1532056619

3760 800

Total total return
Dividends (€)
0.75 0.275
1 0
2 0.0666666667
0.1138888889
Dividends Shares Value Weighting Price return 
per Share (¥) Outstanding
100 5,000 12500000 0.23255814 0.08
150 7,500 26250000 0.488372093 -0.28571429
100 10,000 15000000 0.279069767 0.066666667
53750000
 End of Period
Price (£) Shares
22 300
48 300
30 2,000

0.1 0.0082191781
-0.04 -0.0082191781
0.1538461538 0.1095890411
0.1095890411

Initial margin 0.3003003003

End of Period PriDividend per Share during the Period ($)
37 2 -0.025
52 1.5 0.07
34 0 0.1333333333
0.1783333333
0.0594444444

price
0.243902439 0.1818181818
 1.6666666667
31.800

Price at End of PDividend per Share
9.5 1 10.5
21.5 0.8 22.3
33 0.6 33.6
66.4
22.1333333333
2.1333333333
1.0666666667

1.8181818182
Total
Dividends (£)
1
1.5
1

2012
1,980,300 0.1318881119
15,015,000
Dividend per ShaReturn on Equity
1.92 12% -0.0364583333 0.6
1.85 17% -0.0594594595 0.513888889
1.74 13% -0.0689655172 0.713114754
1.62 15% -0.1666666667 0.778846154
1.35 11% -0.0740740741 0.489130435
1.25 9% 0 0.555555556
-0.0676040085 0.608422631
0.5555555556

1.875 2.34375 2.4609375

1.674 1.87 35.16

28.027
31.571

Dividends per ShaROE
1.92 12% 0.6
1.8 17% 0.5
1.71 13% 0.7008196721
1.6 15% 0.64
0.610204918

2.88 3.456 3.59424

2.504 2.613 32.67

 24.7052
29.8222

€ 1.74 € 1.90 € 2.07 € 2.26 € 2.35

5.98

1.574

y3
5.60%
0.8452224
31.3
 486.72 506.1888 526.436352

6 years 5.50% 79.0517957997

5 years 6.00% 6.7253235558
4 years 6.50% 6.9959078181
3 years 7.00% 7.346680892
2 years 7.50%
1 year 8.00% 0
100.1197080655

5.55 9.25 7.4 6.48

5 8.41 6.7 5.89
79.64 83.78 81.14 80.39
90.19 101.44 95.24 92.76

102.36
0.3351648352 0.3666666667
103.1059370412
Value BOValue EOP
180000 207000
136000 121000
316000 328000
1037.974684
ice return  total return

0.018604651 0.12 0.027906977

-0.13953488 -0.24285714 -0.11860465
0.018604651 0.133333333 0.037209302
-0.10232558 0.01047619 -0.05348837