Business, 10.12.2019 02:31 viicborella
Delta lighting has 30,000 shares of common stock outstanding at a market price of $15.00 a share. this stock was originally issued at $31 per share. the firm also has a bond issue outstanding with a total face value of $280,000 which is selling for 86 percent of par. the cost of equity is 13 percent while the after-tax cost of debt is 6.9 percent. the firm has a beta of 1.48 and a tax rate of 30 percent. what is the weighted average cost of capital? a. 10.07 percentb. 10.87 percentc. 12.36 percentd. 13.29 percente. 13.47 percent
Answers: 1
Business, 22.06.2019 10:50, Nicki3729
The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?
Answers: 3
Business, 22.06.2019 17:10, alexwlodko
Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?
Answers: 1
Delta lighting has 30,000 shares of common stock outstanding at a market price of $15.00 a share. th...
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