Would like to know how to solve this problem
Cost of common stock =Expected dividend/Current price+growth rate
Cost of common stock =(1.2*1.041)/18.32+4.1%
Cost of common stock =10.92%
Would like to know how to solve this problem Question 3 2.5/2.5 View Policies Show Attempt...
Oriole Tire Co. just paid an annual dividend of $1.20 on its common shares. If Oriole is expected to increase its annual dividend by 5.10 percent per year into the foreseeable future and the current price of Oriole's common shares is $12.58, what is the cost of common stock for Oriole? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.) Cost of common stock Attempts: 0 of 2 used Save for...
Cullumber Tire Co. just paid an annual dividend of $1.20 on its common shares. If Cullumber is expected to increase its annual dividend by 8.10 percent per year into the foreseeable future and the current price of Cullumber’s common shares is $11.10, what is the cost of common stock for Cullumber? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.) Sheridan Luxury Liners has preferred shares outstanding that pay an annual...
Ivanhoe Tire Co. just paid an annual dividend of $1.70 on its common shares. If Ivanhoe is expected to increase its annual dividend by 6.10 percent per year into the foreseeable future and the current price of Ivanhoe’s common shares is $16.40, what is the cost of common stock for Ivanhoe? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.)
Question 4 0.5/1 View Policies Show Attempt History Current Attempt in Progress Sunland Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $46 throughout the country to loyal alumni of over 3,000 schools. Sunland's variable costs are 43% of sales, fixed costs are $114,000 per month. (a1) ✓ Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 - 38%.) Contribution margin ratio 0 5...
Question 4 0.5/1 View Policies Show Attempt History Current Attempt in Progress Sunland Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $46 throughout the country to loyal alumni of over 3,000 schools. Sunland's variable costs are 43% of sales, fixed costs are $114,000 per month. (a1) ✓ Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 - 38%.) Contribution margin ratio 0 5...
Question 3 View Policies Show Attempt History Current Attempt in Progress * Your answer is incorrect. Suppose the following information (in millions of dollars) is available for Limited Brands for a recent year: sales revenue $8,670, net income $244, preferred dividend $0, and weighted average common shares outstanding 400 million. Compute the earnings per share for Limited Brands. (Round answer to 2 decimal places, e.g. 15.25.) Earnings per share $ 0.57 eTextbook and Media Save for Later Attempts: unlimited Submit...
Please show work Send to Gradebook Question 2 View Policies Current Attempt in Progress The following information pertains to Parsons Co.: $% none $10 Preferred stock, cumulative: Par value per share $100 Dividend rate Shares outstanding 10.000 Dividends in arrears Common stock Par value per share Shares issued 112.000 Dividends paid per share $2.00 Market price per share $49.00 Additional paid-in capital $480,000 Unappropriated retained earnings (after closinel $290.000 Retained earnings appropriated for contingencies $290,000 Common treasury stock: Number of...
Question 1 0.72/2 View Policies Show Attempt History Current Attempt in Progress These are two independent situations: 1. Sunland Cosmetics acquired 12% of the 287.500 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2020. On June 30, Elite declared and paid a $80.200 dividend. On December 31, Elite reported net income of $228,100 for the year. At December 31, the market price of Elite Fashion was $16 per share. 2....
Question 6 0.4/1 View Policies Show Attempt History Current Attempt in Progress The Cullumber Products Co. currently has debt with a market value of $300 million outstanding. The debt consists of 9 percent coupon bonds (semiannual coupon payments) which have a maturity of 15 years and are currently priced at $1,429.26 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $20 per share. The preferred shares pay an annual dividend...
Question 2 0/1 View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. At January 1, 2020, Martinez Company's outstanding shares included the following. 283,000 shares of $50 par value, 7% cumulative preferred stock 942,000 shares of $1 par value common stock Net income for 2020 was $2,521,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on...