Floyd industries stock has a beta of 1.20. the company just paid a dividend of $.50 and the dividends are expected to grow at 6 percent per year. the expected return on the market is 11 percent, and treasury bills are yielding 5.9 percent. the most recent stock price for the company is $76. a. calculate the cost of equity using the dividend growth method. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. calculate the cost of equity using the sml method. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.

Hillside issues $4,000,000 of 6%, 15-year bonds dated january 1, 2016, that pay interest semiannually on june 30 and december 31. the bonds are issued at a price of $4,895,980. required: 1. prepare the january 1, 2016, journal entry to record the bonds’ issuance

Estimate the prouduct sovle using an area modelestimate the product you solve using an area model and the standard algorithm. remeber to express your products in the standard form