A firm has common stock with D1 = $3.00; P0 = $30; g = 5%; andF = 4%. If the firm must issue new stock, what is its cost of externalequity, re? (15.42%)

Q: If the required return is 12 percent and the company just paid a dividend of $2.80, what is the…

A: Share Price: It represents the current market value to buyers and to the seller. The share price…

Q: If the annual dividend per share for a company is $0.27 and the closing price $29.88, then the Stock…

A: The annual dividend per share is $0.27. The stock price is $29.88.

Q: Q3) Tanten Company has 200% debt and 80% equity. The borrowing rate is 12%. A.  If you own 4% of…

A: "Since you have posted a question with multiple sub-parts, we have solved the first three for you.…

Q: If cost of equity is 14 percent, Earnings per share is Rs.18, Dividend payout ratio is 40 percent…

A: Growth rate = Retention ratio * return on investment = (1 -  Dividend payout ratio)* return on…

Q: Stock is currently selling for $100. What will be the impact on the stock’s price if the company:…

A: Part a: The stock price is $100 but it changes when the cash dividend is paid. That happens because…

Q: Suppose a firm has a book value of owner's equity of $1,200. This is a small firm. If there are 100…

A: The market price of the share can be estimated from the market to book ratio which is a relative…

Q: Big Industries has the following market-value balance sheet. The stock currently sells for $20 a…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: If the nominal value of a share is 15,000 rubles, the dividend rate is 8%, and the interest rate is…

A: Ps = (D / Ir%)* 100% Where, Ps- stock price; D – the dividend rate measured in money; Ir – the…

Q: If Muscat Tiles has preferred stock at $120 per share, the cost of preferred stock 0.135, then what…

A: The dividend are the returns provided to the shareholders by the company. The dividend are the…

Q: For Company ABC, if stock price P0 = $30; dividend paid at the end of period 1 D1 = $3.00; growth…

A: Required rate of return is the return investor expects from the investment made.

Q: Baximco pharma is currently selling for tk125 per share and pays tk. 12 in dividend. Investors…

A: The expected growth rate is the growth rate at which the price of stock as well as dividend…

Q: Company A has a current stock price of S60 and is expected to pay a $2 dividend in one year, The…

A:

Q: The Evanec Company’s next expected dividend, D1, is $3.18; its growth rate is 6%; and its common…

A: a) Cost of retained earnings is the required rate of return to the investors when the company uses…

Q: What is the cost of equity of a fairly valued P100 par value preferred stock that pays 9.5% annual…

A:

Q: The Evanec Company's next expected dividend, D1, is $3.08; its growth rate is 4%; and its common…

A: Cost of retained earning (r) =D1/P0 +g   where D1 = Dividend next year P0 = Current stock price g =…

Q: If flotation cost is 1%, what is the cost of preferred stock that sells for $84 per share and has a…

A: given, F = 1% Price = $84 face value = $100 yield = 6.2%

Q: A firm has 80,000 shares of stock outstanding wih a market price of $25 per share. If net income for…

A: The dividend yield is calculated as the ratio of dividend per share and the market price of the…

Q: Assume JUP has debt with a book value of $20 million, trading at 120% of par value. The firm has…

A: Weighted Average Cost of Capital ("WACC") is the overall cost of capital for the company for all the…

Q: If Muscat Tiles has preferred stock at $120 per share, the cost of preferred stock 0.129, then what…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: Mayo Inc.'s perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual…

A: The cost of preferred shares is determined by the dividends paid by the company as return for the…

Q: Company MNO has common stock with a market value of $9.15 and an annual dividend of $0.55. Company…

A: Yield on an investment is the earning made by the investor over a period of time. Higher the yield,…

Q: Company X is interested in calculating its weighted-average cost of capital. Company X has a current…

A: WACC- Weighted average cost of capital (WACC) is the rate that a company is expected to pay on…

Q: If the annual dividend per share for a company is $0.79 and the closing price $26.42, then the Stock…

A: Annual Dividend = 0.79 Closing Price = 26.42

Q: The Evanec Company's next expected dividend, D1, is $3.50; its growth rate is 5%; and its common…

A: Since you have not mentioned the specific question we will just answer the first question in case…

Q: A firm has an equity multiplier of two and total assets of $300. If its return on equity is 10%,…

A: Equity Multiplier = 2 Total Assets = 300 Return on Equity = 10% Net Income = ?

Q: What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: A company has an EPS of $3.30, a book value per share of $32.34, and a market/book ratio of 3.1x.…

A: EPS=3.30 Book value per share =32.34 Market book ratio = 3.1x

Q: What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book…

A: Market Value  / Book Value Ratio = 3.50 Book Value = $3,000,000 Market Value = $3,000,000 * 3.50…

Q: f flotation cost is 1%, what is the cost of preferred stock that sells for $84 per share and has a…

A: Preferred Stock is financial security used by entities to raise fund and holders get two…

Q: National Co. has established a target capital structure of 30% debt and 70% common equity. The…

A: Last dividend (D0) = P2 Growth rate (g) = 0.02 Current market price (P0) = P25 Marginal cost of…

Q: Messman Manufacturing will issue common stock to the public for $30. Theexpected dividend and the…

A: The rate of return that is expected by investors on their equity investment is term as the cost of…

Q: 9. Corporation Gen. Math, with a current market value of P 95.00, give a dividend of P 15.00 per…

A: Current market value of share = P 95 Annual dividend amount = P 15

Q: The Blooming Flower Co. has earnings of $1.87 per share. a. If the benchmark PE for the company is…

A: PE ratio is the ratio of price of share divided by earnings per share of the company. PE=share…

Q: Anle Corporation has a current stock price of $19.63 and is expected to pay a dividend of $0.75 in…

A: Given, Stock price after paying dividend (P1) = $21.45 Dividend (D) = $0.75 Current stock price (P0)…

Q: The stock of North American Danduff Company is selling at $80 per share. The firm pays a divdend of…

A: Given Information: Stock price - $80 per share Dividend - $2.50 per share

Q: A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and…

A: Given information : The market value of a company refers to the market price of the stock per share…

Q: If a company’s stock is currently selling for $12 per share and its price earningsratio is 6, what…

A: Calculation of earnings per share: Answer: Earnings per share is $2

Q: Using the P/E multiples approach to valuation, What is the estimated price of a stock if the firm’s…

A: Calculation of estimated price of stock:Answer:Expected price of stock is $82.26

Q: The Evanec Company's next expected dividend, D1, is $3.37; its growth rate is 7%; and its common…

A: The cost of common equity can be calculated by using this equation Cost of common equity(rs)=D1Po+g…