finance

Extra Credit Assignment #3 (1 point, due on 12/4)

1. Below is a company’s stock quote on March 1, 2021:

Name	Close	Net Chg	Div		P/E
DSD	20.25	-.15	1.05		16

What is the company’s earnings per share (EPS)?

2. Ralph buys 100 shares of DSD stock for $20 per share. He holds if for 1 year and then sells it $25 per share. During the year he receives a $0.50 per share dividend. What is Ralph's:  a) total dollar capital gains or loss, b) total return?

3. An investment bank agrees to a firm commitment offering of 5 million shares of a firm’s stock. The offer price is set at $20 per share. The bank charges a flat fee of $600,000. If the bank sells the issue to the public at $21 per share, what are the net proceeds to the bank and to the firm?

4. Chelsea has $10,000.  The following quotations are available to her for US dollars ($), Convertible Marka (KM), and Swiss Francs (SF).  She may either buy or sell at the stated rates:

·           U.S. Bank:  $1.25/SF

·           Bosnia Bank:  $4.40/KM

·           Swiss Bank:  SF3.45/KM

What is Chelsea’s arbitrage profit assuming a triangle arbitrage is possible?