What is simon cost of equity using dividend growth model

Assignment Help Finance Basics
Reference no: EM13283898

Simon inc. Just issued a dividend of $2.61 per share on its stock. Analyst expect simon's dividend to grow indefinitely at a constant rate of 5% per year. If the stocks current price is $31.50, what is Simon's cost of equity using the dividend growth model?

Reference no: EM13283898

Questions Cloud

Find e-field between conductors of coaxial transmission line : Consider a coaxial transmission line that consists of inner andouter conductors of radii a and b, and is filled with an electroncloud with a volume charge density ofρv=γ/ρ[C/m3] fora
What is varian cost of debt for this bond issue : Varian corp. has three outstanding long-term debt issues. One issue has only four years left until maturity. These bonds have a face value of $1000 , pay a 12.2% annual coupon, and currently sell for 1024. What is Varian's cost of debt for this bo..
An analytical paper on a philosophical topic related to any : An analytical paper on a philosophical topic related to any of the class readings
What is the average dividend growth rate : Simon CFO disagrees with the consensus analyst growth forecast of 5%. She points to the last four years of dividends that Simons stock has paid as proof that the firm is capable of better growth.Tow years ago Dividend 2.19
What is simon cost of equity using dividend growth model : Analyst expect simon's dividend to grow indefinitely at a constant rate of 5% per year. If the stocks current price is $31.50, what is Simon's cost of equity using the dividend growth model?
Design a single-pole pin diode switch operating at f : Design a single-pole PIN diode switch operating at f = 8 GHz. A PINdiode has the following parameters: Cj = 0.03 pF, R(forward) = 0.2Ω, R(reverse) = 7 Ω, Li = 0.6 nH, Zo = 50 Ω. Find what type of connection, series or shunt, gives thegreatest ratio..
Modify counter except for hooking logic to inputs and output : Assume you have a 3-bit pre-packaged counter. You cannot modify thecounter except for hooking logic to the inputs and outputs. Thecircuit has synchronous load and synchronous reset control inputs.The loadable inputs are a2, a1, and a0 (with a2 as ..
What is the break-even level of earnings before interest : The debt and equity option would consist of 15,000 shares of stock plus $255,000 of debt with an interest rate of 8 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes.
Identify the compound and molecular mass : Identify the compound: molecular mass 113; gives a positive hydroxamate test; IR: 2237, 1733, 1200 cm-1; 1H NMR: ? 1.33 (3H, t, J = 7 Hz), ? 3.45 (2H, s), ? 4.27 (2H, q, J = 7 Hz). Please draw the structure.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the effective annual return of each investment

Assuming that all three investment opportunities have the same level of risk, calculate the effective annual return of each investment and select the best investment choice.

  What is depreciation

What is depreciation and why is it considered a noncash item? Give several examples.

  Calculate the residual income or eva

Hospital is a division of Superior Healthcare managed as an investment center. In the last year, the hospital reported an after-tax income of $2,500,000.

  Evaluate the cost of common equity using capm formula

Evaluate the cost of common equity using CAPM formula and hired you as a consultant to help them estimate its cost of capital

  Make a cash budget

The Sharpe company's projected sales for the first eight months of 2004 Sharpe purchases its raw materials 2 months in advance of its sales equal to 60 percent of their final selling price

  Use uniform payment method

Your friend is considering buying a patio heater for her pub. She thinks that she can extend her patio season by several weeks and make more money. The patio heater costs $2000 but will increase beer profits by $525 per year. If the patio heater has ..

  Compute degree of total leverage

Kermit's Hardware's fixed operating costs are $20.8 million and its variable cost ratio is 0.30. The firm has $10 million in bonds outstanding with a coupon interest rate of 9 percent.

  What are the barriers to control success

What are the keys to successful control, and what are the barriers to control success.

  What is the cost of capital for this project

The debt-equity ratio is .65 and the tax rate is 40 percent. What is the cost of capital for this project?

  Determine the amount of dividends per share for common

Determine the amount of dividends per share for common and prefrred stock for all 3 years. The preferred shares are cumulative preferred.

  Determine the value of the firms current liabilities

A company's balance sheet shows current assets of $95, net fixed assets of $250, long-term debt of $40, and owners equity of $200. Determine the value of the firm's current liabilities if that the only remaining balance sheet item.

  Are receipts deposited intact daily on a timely basis

Are sales invoices independently compared with customers' orders for prices, quantities, extensions and footings?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd