Last year the Black Water Inc. paid dividends $4.44. Company’s dividends are expected to grow at...
Last year the Black Water Inc. paid dividends $4.44. Company’s dividends are expected to grow at an annual rate of 2% forever. The company’s common stock is currently selling on the market for $61.01. The investments banker will charge flotation costs $3.03 per share. Calculate the cost of common equity financing using Gordon Model.
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Last year the Black Water Inc. paid dividends $4.44. Company’s
dividends are expected to grow at...
Last year the Black Water Inc. paid dividends $3.17. Company's dividends are expected to grow at...
Last year the Black Water Inc. paid dividends $3.17. Company's dividends are expected to grow at an annual rate of 5% forever. The company's common stock is currently selling on the market for $68.93. The investments banker will charge flotation costs $2.67 per share. Calculate the cost of common equity financing using Gordon Model. Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).
The common stock of NCP paid $1.32 in dividends last year. Dividends are expected to grow...
The common stock of NCP paid $1.32 in dividends last year. Dividends are expected to grow at an 8 percent annual rate for an indefinite number of years. If NCP's current market price is $23.50 per share, what is the stocks expected rate of return?
XYZ’s stock paid $2.00 dividend last year. The company’s earnings and dividends are expected to grow...
XYZ’s stock paid $2.00 dividend last year. The company’s earnings and dividends are expected to grow at an annual rate of 5%. Given its risk, if the investors’ required rate of return on the stock is 15%, what is the market value of XYZ’s stock?
The common stock of NCP paid $1.45 in dividends last year. Dividends are expected to grow...
The common stock of NCP paid $1.45 in dividends last year. Dividends are expected to grow at an annual rate of 6.40 percent for an indefinite number of years. a. If NCP's current market price is $23.05 per share, what is the stock's expected rate of return? b. If your required rate of return is 8.4 percent, what is the value of the stock for you? c. Should you make the investment?
Pathos Co.'s common stock is currently selling for $24.26. Dividends paid last year were $0.80. Flotation...
Pathos Co.'s common stock is currently selling for $24.26. Dividends paid last year were $0.80. Flotation costs on issuing stock will be 12 percent of market price. The dividends and earnings per share are projected to have an annual growth rate of 12 percent. What is the cost of internal common equity for Pathos? The cost of internal common equity for Pathos is......%
RAZR Industries just paid a dividend of $1.35 per share. Dividends are expected to grow at...
RAZR Industries just paid a dividend of $1.35 per share. Dividends are expected to grow at 3% forever. The stock is currently trading at $45 per share. Calculate the cost of common stock for the firm.
7-Suppose that your company just paid a dividend of $1.2; the dividends are expected to grow at a...
7-Suppose that your company just paid a dividend of $1.2; the dividends are expected to grow at a constant rate of 5% indefinitely. Today’s market price/share is $45. Suppose also that your company has some bonds outstanding in the market selling for $1,035. The bonds have 8 years left to maturity, with 8% coupon rate with semi-annual payments. If your company’s capital structure is 35% debt and 65% equity, with the tax rate of 40% what is the WACC? Your...
Haroldson Inc. common stock is selling for $26 per share. The last dividend was $1.10, and...
Haroldson Inc. common stock is selling for $26 per share. The last dividend was $1.10, and dividends are expected to grow at a 7% annual rate. Flotation costs on new stock sales are 5% of the selling price. What is the cost of Haroldson Inc.'s new common stock?
The common stock of NCP paid $1.42 in dividends last year. Dividends are expected to grow...
The common stock of NCP paid $1.42 in dividends last year. Dividends are expected to grow at an annual rate of 5.3 percent for an indefinite number of years. a. If your required rate of return is 7.6 percent, what is the value of the stock for you? b. Should you make the investment? ---------------------------------------------------------------------------------------------------------------------------------------------------------------- a. If your required rate of return is 7.6 percent, the value of the stock for you is $________ (Round to the nearest cent.) b....
4. The future earnings, dividends, and common stock price of Barstool Inc. are expected to grow...
4. The future earnings, dividends, and common stock price of Barstool Inc. are expected to grow 2% per year. Barstool’s common stock currently sells for $18.00 per share. Its last dividend was $1.50 and it will pay $1.53 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? b. If the beta is 2, the risk free rate is 7%, and the average return on the market is 16%, what...
Last year the Black Water Inc. paid dividends $3.17. Company's dividends are expected to grow at an annual rate of 5% forever. The company's common stock is currently selling on the market for $68.93. The investments banker will charge flotation costs $2.67 per share. Calculate the cost of common equity financing using Gordon Model. Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).
Haroldson Inc. common stock is selling for $26 per share. The last dividend was $1.10, and dividends are expected to grow at a 7% annual rate. Flotation costs on new stock sales are 5% of the selling price. What is the cost of Haroldson Inc.'s new common stock?
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