Firm x has a tax rate of 30 the price of its new preferred

Assignment Help Finance Basics
Reference no: EM13478366

Firm X has a tax rate of 30%. The price of its new preferred stock is $63 and its flotation cost is $3.15. The cost of new preferred stock is 12%. What is the firm's dividend?

A) $7.18

B) $5.03

C) $7.56

D) none of the above.

Reference no: EM13478366

Questions Cloud

Supposing that yield to maturity of each bond remains at 88 : an investor has two bonds in his or her portfolio bond c and bond z. each matures in 4 years has a face value of 1000
Masulis inc is considering a project that has the following : masulis inc is considering a project that has the following cash flow and wacc data. what is the projects discounted
Leak inc forecasts the free cash flows in millions shown : leak inc. forecasts the free cash flows in millions shown below. if the weighted average cost of capital is 11 and fcf
Assume further that interest rate remained at 6 percent : suppose ford motor company sold an issue of bonds with a 10-year maturity a 1000 par value a 10 percent coupon rate
Firm x has a tax rate of 30 the price of its new preferred : firm x has a tax rate of 30. the price of its new preferred stock is 63 and its flotation cost is 3.15. the cost of new
Clculate realized rate of return for investors who : six years ago the singleton company sold a 20-year bond issue with a 14 percent annual coupon rate and a 9 percent
List and explain the points of financial impact on a : list and explain the points of financial impact on a company if it raises the credit standards required of its
If you put 10000 in an investment that returns 14 percent : if you put 10000 in an investment that returns 14 percent compounded monthly what would you have after 12 years round
You inherited an oil well that will pay you 30000 per year : you inherited an oil well that will pay you 30000 per year for 25 years with the first payment being made today. if you

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the expected return on each stock

Assume you have invested in two stocks, stock Y and stock Z. The returns on the two stocks depend on the following three states of the economy, which are equally likely to happen.

  What type of industries would make most use of short-range

What type of industries would make the most use of short-range, medium-range, and long-range forecasts?

  How long will it take him to pay off the loan

Your neighbor just received a credit offer in an e-mail. The company is offering him $6,000 at 12.8 percent interest. The monthly payment is only $110. If he accepts this offer, how long will it take him to pay off the loan?

  Calculate and graph the net profit margin

For your stock companies HSBC Holding,PLC, calculate and graph the net profit margin, total asset turnover, and return on assets for each of the past three years.

  Which project is the most valuable

Which project is the most valuable? 4. When considering the TVM which project is the most attractive?

  Calculate the rate of return on equity

Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.

  Why does it make sense to say that interest rate is price

why does it make sense to say that the interest rate is the price to rent money? explain why the real interest rate is

  What is the coefficient of variation

The forecast for your firm indicates there's a 20% chance that Net Income will be $20,000, a 60% chance it will be $30,000, and a 20% chance it will be $40,000.

  What are the external funding needs

They have $100,000 in notes payable due in July that must be repaid, or an extension renegotiated. Will they be able to pay off the notes?

  What is the total value of turner corp

This firm had 150 million shares outstanding, a share price of $14.25, and net income of $182 million. What is the total value of Turner Corp.? Round to the nearest million dollars.

  What is the price of this bond

What is the price of this bond if the annualized effective rate is 5 percent?

  Advantages and disadvantages of mergers and acquisitions

What are the advantages and disadvantages of mergers and acquisitions to the economy and what are some ways the government is involved in them, and should the government be more or less involved?

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