Anle Corporation has a current stock price of $19.63 and is expected to pay a dividend of $0.75 in one year. Its expected stock price right after paying that dividend is $21.45. a. What is Anle's equity cost of capital? b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain?
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- You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D 1 = $2.65; P 0 = $50.00; g = 6.00% (constant); and F = 4.00%. What is the cost of equity raised by selling new common stock?To help them estimate the company's cost of capital, Smithco has hired you as a consultant. You have been provided with the following data: Do = $1.45; Po = $22.50; and g = 6.50% (constant). Based on the dividend growth approach, what is the cost of common from reinvested earnings? 11.68% 12,30% 12.56% 12.94% 13.36% O O o O o OA financial analyst wants to compute a company's weighted average cost of capital (WACC) using the dividend discount model. The company has a before-tax cost of new debt of 9%, tax rate of 37.5%, target debt-to-equity ratio of 0.76, current stock price of $74, estimated dividend growth rate of 7% and will pay a dividend of $3.2 next year. What is the company’s WACC A. 8 percent. B. 9 percent. C. 10 percent. D. 11 percent.