Quizzes- Managerial Faceb Enter y 67852 Finance X.. As GALILEO Locker Logged in
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Quizzes- Managerial Faceb Enter y 67852 Finance X.. As GALILEO Locker Logged in as landers-ashleigh | 11/10/2017 STATE Managerial Finance XLS Group B8 Fall Semester 2017 CO ERSITY Self Assessments Classi Discussions Assignments Quizzes V Grades! Groups III Rubrics Quiz 13- Cost of Capital- Quiz Ashleigh Landers: Attempt 1 The Down and Out Co. just issued a dividend of $2.60 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for ss0 a share, the company's cost of equity is 0 11.82% O, 12.79% 9.41% 10.83% o 14.26% Save Question 3 (10 points) stock, and 20 percent percent. The relevant Mullineaux Corp debt. Its cost of equity is 13 percent, the cost of preferred stock is 3.5 percent, and the cost of debt is 7 tax rate is 35 percent. Mullineaux's WACC is poration has a target capital structure of 70 percent common stock, 10 percent 10.36% 12.41% 1167%Explanation / Answer
Cost of equity is 9.41% Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Amount Ke= D1/p0+ g where D1 is dividend at the end of year = 2.6*1.04 2.704 P0 is price at the beginning 50 g is growth rate 4% Ke= 2.704/50+ 4% Ke= 5.41%+ 4% Ke= 9.41%
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