JoyFM common stock has a beta of 1.98. The stock is currently selling for $12 a...
JoyFM common stock has a beta of 1.98. The stock is currently selling for $12 a share. The expected market return is 11 percent, and the expected market risk premium is 8 percent. According to analysts’ estimates, its dividend will grow at 5% per year. The company is expected to pay a dividend of $1.7 per share next year. What is the cost of equity of JoyFM company (Use SML and DGM)?
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JoyFM common stock has a beta of 1.98.
The stock is currently selling for $12 a...
305,000 shares of common stock selling for $66.10 per share. The stock has a beta of...
305,000 shares of common stock selling for $66.10 per share. The stock has a beta of 1.02 and will pay a dividend of $4.30 next year. The dividend is expected to grow by 5.1 percent per year indefinitely. What is the cost of equity? Please show work
Cartwright Brothers’ stock is currently selling for $40 a share. The stock is expected to pay...
Cartwright Brothers’ stock is currently selling for $40 a share. The stock is expected to pay a $4 dividend at the end of the year. The stock’s dividend is expected to grow at a constant rate of 7 percent a year forever. The risk-free rate (kRF) is 7 percent and the market risk premium (kM – kRF) is 5 percent. What is the stock’s beta? a. 5.00 b. 1.00 c. 2.00 d. 3.00 e. 4.00
Cartwright Brothers’ stock is currently selling for $40 a share. The stock is expected to pay...
Cartwright Brothers’ stock is currently selling for $40 a share. The stock is expected to pay a $4 dividend at the end of the year. The stock’s dividend is expected to grow at a constant rate of 7 percent a year forever. The risk-free rate (kRF) is 7 percent and the market risk premium (kM – kRF) is 5 percent. What is the stock’s beta? a. 5.00 b. 1.00 c. 2.00 d. 3.00 e. 4.00
Suppose your company has a beta of 1.5. The market risk premium is expected to be...
Suppose your company has a beta of 1.5. The market risk premium is expected to be 9% and the current risk-free rate is 3%. We have used analysts' estimates to determine that the market believes our dividends will grow at 5% per year and our last dividend was $2.5. Our stock is currently selling for $45. What is the cost of equity under the CGDM?
1. ABC Company currently pays a dividend of $1.2 pay share; the company's stock is selling...
1. ABC Company currently pays a dividend of $1.2 pay share; the company's stock is selling at $55 per share and its dividend is expected to grow at 7% a year. What's' its cost of equity under DGM?
Q: Suppose our company has a beta of 1.21. The S&P 500 return is expected to...
Q: Suppose our company has a beta of 1.21. The S&P 500 return is expected to be 2.3% and the current risk-free rate is 0.5%. We have used analysts' estimates to determine that the market believes our dividends will grow at 3.5% per year and our last dividend was $2.4. Our stock is currently selling for $15.65. Please use dividend growth model and CAPM model to estimate our cost of equity. The format of your email reply should be like...
Ebey’s Enterprises has a beta of 2. The stock is currently selling for $12 a share....
Ebey’s Enterprises has a beta of 2. The stock is currently selling for $12 a share. The overall stock market has a10 percent rate of return and a risk premium of 8 percent. What is the firm’s cost of equity? Group of answer choices 2% 20% 6% 22% 18%
The common stock of Flavorful Teas has a beta of 48. The risk-free rate of return...
The common stock of Flavorful Teas has a beta of 48. The risk-free rate of return is 2.5 percent. The return on the market is 12 percent and. What is the expected return on this stock? If the Market risk premium is 8.5%, what is the expected return on this stock? ABC Corp just paid a dividend of $1.5 per share. The dividend is expected to grow at 4% a year indefinitely. If the required rate of return is 8.5%,...
16,17,18 stock has a beta of 1.5, the expected return on the market is 11 percent,...
16,17,18
stock has a beta of 1.5, the expected return on the market is 11 percent, and the risk- Free rate is 3.85 percent. What must the expected return on this stock be? Multiple Choice 15.16% O 20.35% O 13.85% O 15.3% O The Bet-r-Bilt Company has a 5-year bond outstanding with a 3.70 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 90 percent of its face...
Q2. Expect that stock in Alpha Air Freight has a beta of 1.2. The market risk...
Q2. Expect that stock in Alpha Air Freight has a beta of 1.2. The market risk premium is 7 percent, and the risk-free rate is 6 percent. Alpha's last dividend was $2 per share, and the dividend is expected to grow at 8 percent indefinitely. a. The stock currently sells for $30. Analyze how it will be Alpha's cost of equity capital.
Suppose your company has a beta of 1.5. The market risk premium is expected to be 9% and the current risk-free rate is 3%. We have used analysts' estimates to determine that the market believes our dividends will grow at 5% per year and our last dividend was $2.5. Our stock is currently selling for $45. What is the cost of equity under the CGDM?
1. ABC Company currently pays a dividend of $1.2 pay share; the company's stock is selling at $55 per share and its dividend is expected to grow at 7% a year. What's' its cost of equity under DGM?
Q: Suppose our company has a beta of 1.21. The S&P 500 return is expected to be 2.3% and the current risk-free rate is 0.5%. We have used analysts' estimates to determine that the market believes our dividends will grow at 3.5% per year and our last dividend was $2.4. Our stock is currently selling for $15.65. Please use dividend growth model and CAPM model to estimate our cost of equity. The format of your email reply should be like...
16,17,18
stock has a beta of 1.5, the expected return on the market is 11 percent, and the risk- Free rate is 3.85 percent. What must the expected return on this stock be? Multiple Choice 15.16% O 20.35% O 13.85% O 15.3% O The Bet-r-Bilt Company has a 5-year bond outstanding with a 3.70 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 90 percent of its face...
Q2. Expect that stock in Alpha Air Freight has a beta of 1.2. The market risk premium is 7 percent, and the risk-free rate is 6 percent. Alpha's last dividend was $2 per share, and the dividend is expected to grow at 8 percent indefinitely. a. The stock currently sells for $30. Analyze how it will be Alpha's cost of equity capital.
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