In an economy the closing stock is $2000 million and opening stock is exactly half of it. Calculate the value of change in stock
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In an economy the closing stock is $2000 million and opening stock is exactly half of it.
Calculate the value of change in stock
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- Eakins Inc.’s common stock currently sells for $50.00 per share, the company expects to earn $2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings?Calculate the change in the current price of a common stock if the initial current price was $950, the expected future price one year from now just decreased from $1,200 to $1,100, and the stock pays $50 in dividends.A company’s common stock is currently selling at $40 per share. Its most recent dividend was $1.60, and the financial community expects that its dividend will grow at 10% per year in the foreseeable future. What is the company’s equity cost of retained earnings? If the company sells new common stock to finance new projects and most pay $2 per share in flotation costs, what is the cost of equity? Be sure to include your work for all calculations.
- A company expects an indefinite stream of future dividends of P200,000 and a required rate of return of 16 percent. There are 100,000 shares. REQUIREMENTS: 1. What is the market value of the stock? 2. What is the market price per share?Suppose a firm is operating in 2 periods. The shareholders are expecting to receive $100,000 economic profits (per share of stock) in period 1 and $120,000 (per share of stock) in period 2. Given the required rate of return is the same in both period, which 0.05 and the real option value is $50,000. What is the current value of a share of stock? (Report your answer with 2 decimal points)Suppose you have the following information about a company. Calculate the stock price per share. A company has a current value of operations of $400 million. The company has $80 million in short-term investments, $200 million in debt and 10 million shares outstanding.
- Eakins Inc.'s common stock currently sells for $55.00 per share, the company expects to earn $2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? A. 0.21% B. 0.30% C. 0.37% D. 0.24% E. 0.27%A firm earns $3550 million in profits and pays $2480 million in dividends for the year. The firm has 175 million shares of preferred stock and 525 million shares of common stock. The preferred stock is guaranteed a dividend of $4.50 per year and costs $52 per share. The common stock costs $39 per share. What is the dividend yield for the common stock? Enter your response as a percent and do not include the percent sign. Round to 1 decimal place.Suppose a firm has a retention ratio of 65 percent and net income of $9.9 million. How much does it pay out in dividends? (Enter your answer in dollars not in millions.)
- A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per year and costs $32 per share. The common stock costs $29 per share. What is the price-to-earnings ratio for the common stock? Enter your response rounded to 1 decimal places.Wayne, Inc.'s outstanding common stock is currently selling in the market for $54. Dividends of $3.16 per share were paid last year, return on equity is 35 percent, and its retention rate is 26 percent. a. What is the value of the stock to you, given a required rate of return of 17 percent? b. Should you purchase this stock?$10,000 is paid as an annual dividend to shareholders, market value of shares is $100,000. The next dividend will be paid one year from today. The dividend is not expected to grow. What is the shareholder’s required rate of return?
