![subject](/tpl/images/cats/ekonomika.png)
Business, 27.04.2021 16:10 Goldenstate32
The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have different dividend policies. Gecko pays no dividend, whereas Gordon has an expected dividend yield of 6 percent. Suppose the capital gains tax rate is zero, whereas the income tax rate is 40 percent. Gecko has an expected earnings growth rate of 10 percent annually, and its stock price is expected to grow at this same rate.
Required:
If the aftertax expected returns on the two stocks are equal (because they are in the same risk class), what is the pretax required return on Gordon’s stock?
![ansver](/tpl/images/cats/User.png)
Answers: 2
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 19:30, alejandra340
Adisadvantage of corporations is that shareholders have to pay on profits.
Answers: 1
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 19:50, lucky1940
The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.
Answers: 2
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 20:30, anilauferc
You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase
Answers: 3
![image](/tpl/images/cats/ekonomika.png)
You know the right answer?
The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have...
Questions in other subjects:
![Konu](/tpl/images/cats/istoriya.png)
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/istoriya.png)
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/fizika.png)
![Konu](/tpl/images/cats/istoriya.png)
History, 19.09.2021 08:50
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/himiya.png)
![Konu](/tpl/images/cats/mat.png)