Calculate the cost of preferred stock-rps with information

Assignment Help Financial Econometrics
Reference no: EM13334607

Calculate the cost of preferred stock (rPS) with the given information:

Par Value = $200

Current Price = $208

Flotation Cost = $16

Annual Dividend = 12% of Par

Reference no: EM13334607

Questions Cloud

Find the average power delivered to the entire circuit : A series ac circuit contains a 230? resistor, a 13.0mH inductor, a 2.50?F capacitor, and an ac power source of voltage amplitude 45.0Voperating at an angular frequency of 360rad/s. Find the average power delivered to the entire circuit
What would be the cost of equity from new common stock : A firm expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $32.50 per share.
Explain acid-base conjugate pair : Which of the following is correct regarding an acid-base conjugate pair. a. The conjugate base will have one less proton and one less negative charge. b. The conjugate acid will have one more proton and one less positive charge.
Find translational kinetic energy of its center of gravity : A 11.8-kg cylinder rolls without slipping on a rough surface. At an instant when its center of gravity has a speed of 10.8 m/s, find the translational kinetic energy of its center of gravity
Calculate the cost of preferred stock-rps with information : Calculate the cost of preferred stock (rPS) with the given information: Par Value = $200 Current Price = $208 Flotation Cost = $16 Annual Dividend = 12% of Par
What is the risk exposure : What is the difference between scope and a project plan? What basic questions must a scope statement answer?
Compare and contrast probability and non-probability samplin : Compare and contrast probability and non-probability sampling. What are the advantages and disadvantages of each?
Evaluate e for the reaction at 25 degrees : for a certain reaction delta H=-76.8 and delta S=-217 If n=3 calculate E for the reaction at 25 degrees. Will ou please show me step by step on how to do this please
Explain how to compute the cost of external equity-re : The expected dividend is $2.50 per share and the growth in dividends is 8%. If the flotation cost is 10% of the issue proceeds, compute the cost of external equity, re.

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Determine what is the portfolios beta in a stock

Your investment club has only two stocks in its portfolio. $20,000 is invested in a stock with a beta of 0..7, and $35,000 is invested in a stock with a beta of 1.3. What is the portfolio's beta

  What are the total state and federal unemployment taxes

Morris Leste, owner of Carlson Company, has three employees who earn $400, $500, and $700 per week. What are the total state and federal unemployment taxes that Morris owes for the first 11 weeks of the year and for week 30

  Determine at what price will get a margin call

The current market price of stock A is $20 per share. I sell short 100 shares with initial margin requirement of 50%. One year later, the stock price is 18$ and paid dividend equal to $1 per share.

  What would the nominal rate of interest on acme bonds

Inflation is expected to remain constant in the future at 3.3%. Default-risk premium is expected to remain constant at the rate of 1.8% . The liquidity risk is only 0.03% on the bonds.

  Compute the payback period-npv and irr

A project has a WACC of 8% and an initial cash outlay of $1000. The life of this project is 4 years and cash flows are expected to be $400 per year.

  What is the percentage change in the price of bonds sam

Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, wheareas Bond Dave has 15 years to maturity.

  What rate of return did the coin return for the numismatist

Assume that in 2010, a gold dollar minted in 1885 sold for $135,000. For this to have been true, what rate of return did this coin return for the lucky numismatist

  How much do need to save at the end of each year

YOu want to retire in 30 years. You deposit $20,000 in the account now and plan to save an equal amount each year for the next 30 years. Once you retire, you will need $675,000. r=6%.

  What is the future value of these investment cash flows

Trigen Corp. management will invest cash flows of $1,263,837, $548,573, $1,448,382, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years.

  How should the fed-fdic and occ economists respond

The bank officials are concerned about the on-going shrinkage of bank assets as a share of total assets of financial institutions in the United States. In the late 1990s, assets of commercial banks as a percentage of total assets

  Estimate mary taxable income-tax liability and tax refund

Mary Watson is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $45,000 as a sales assistant for Focused Business Analytics: $3,910 of her wages was withheld for federal income taxes.

  Find the number of full payments needed

A debt of $4000 with interest at 12% compounded semi annually, is to be repaid by semi-annual payments of $400 each. Find the number of full payments needed and the final payment.

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