What is the cost of retained earnings

Assignment Help Finance Basics
Reference no: EM13263536

A firm's stock is selling for $85. The next annual dividend is expected to be $2.00. The growth rate is 9%. The flotation cost is $5. What is the cost of retained earnings?

Reference no: EM13263536

Questions Cloud

What is the value per share of your firm stock : after which growth should be at a constant rate of 6%. The last dividend paid was $1.00. What is the value Per share of your firm's stock?
Design an algorithm in pseudocode to solve the problem : Sizes are given as the diameter of the pizza in inches. The cost of a pizza is based on the size. Bob would like to know which size of pizza has the lowest cost per square inch. a. Identify the inputs and outputs for this problem.
Determine the self-induced emf in the solenoid : A 100 m long solenoid has a radius of 0.050 m and 1.5 x 10^4 turns. Determine the self-induced emf in the solenoid due to the changing environment
What was the most recent dividends per share paid : What was the most recent dividends per share paid on the stock(hint: you are looking for DO)?
What is the cost of retained earnings : A firm's stock is selling for $85. The next annual dividend is expected to be $2.00. The growth rate is 9%. The flotation cost is $5. What is the cost of retained earnings?
Estimate the shear stress : Estimate the shear stress if this force is ex- erted on a 0.412 cm -thick pine board that is 13.7 cm wide
Calculate the amount of charge q in coulombs : A capacitor of value C=10 uF(microfarads: where 1 uF=10^-6 F) has a voltage of 2 volts across it. Calculate the amount of charge Q,in coulombs,on each plate.
What is the expected rate of return on this stock : while the probability of a normal economy is 55% and the chance of a recession is 25%. What is the expected rate of return on this stock?
What is the variance of the returns on rtf : The probability of a boom is 60% while the probability of a recession is 40%. What is the variance of the returns on RTF, Inc. stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  Working capital management and health care

Summarize at least three articles on working capital management. Cite a minimum of three primary source references with publication dates less than 18 months old.

  Time value of money-present value

Evaluate the three alternative bonus plans. Sally can earn a 6% annual return on her investments. Which option should she take. Please show all calculations to support your answer.

  Determine average cash balance

Throughout the course of the year, my various projects will require a total amount of cash of $4,000,000. The interest cost for this requirement is 9.75 percent

  Return characteristics of a portfolio

Define the following and give an example: Risk - Return - Risk Preferences  and describe in terms of correlation and diversification the risk and return characteristics of a portfolio.

  Define comparison of borrowing costs based on annual percent

Define Comparison of borrowing costs based on annual percentage yield and the bond has a 20-year life

  Objectives questions on key data

Determine which of the following are temporary differences that are normally classified as expenses or losses that are deductible after they are recognized in financial income?

  Define invisible hand

Discuss and explain what Smith meant by the "invisible hand". Determine what is the mechanism by which selfish interests are made compatible with - indeed, made the agent for - successful social provisioning?

  What are the net proceds to the firm

Rayac is About to go public. Its stcokholders own 500,00 shares. The new public issue will represent 700,000 shares. The shares will be Prices at $25.00 to the public with a 5% spread. the out of pocket cost will be $450,00. What are the net proce..

  Discuss on efficient markets hypothesis

Discuss on efficient markets hypothesis thus we can simply pick mutual funds at random Is this statement true or false

  Annuity payments from insurance policy

Sarah is age 73 and has a great deal of difficulty living independently, as she suffers from severe arthritis.How much income must Sarah report if she elects the annuity? How much income would Sarah have to report if her nursing home bills amounted..

  Find the expected earnings

A company currently earns $1 per share. A financial analyst believes that earnings will grow yearly at the rate of 10% for five years and then decline to 5%.

  Determination of wacc

Mullineaux Company has a target capital structure of 60 percent common stock, 5% preferred stock, and 35% debt. Its cost of equity is 14 percent, the cost of preferred stock is 6%.

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