Is the stock a good buy and why

Reference no: EM13282873

McMillen House of Books recently paid a $3 dividend on its preferred stock. Investors require a 6% return on the stock. The stock is currently selling for $45. Is the stock a good buy and why?

Reference no: EM13282873

Questions Cloud

What is the projected net present value of this project : The pre-tax cost of debt is 9.2 percent and the cost of equity is 12.1 percent. The tax rate is 34 percent. What is the projected net present value of this project?

What debt-equity ratio is needed for the firm : Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9.2 percent. The firm has an aftertax cost of debt of 6.4 percent and a cost of equity of 12.8 percent. What debt-equity ratio is needed for the firm to achieve their target..

Determine the pressure applied to the fluid in the lift : The small piston of a hydraulic lift has a diameter of 8.70 cm , and its large piston has a diameter of 44.0 cm. Determine the pressure applied to the fluid in the lift

What is jack weighted average cost of capital : The U.S. Treasury bill is yielding 6 percent and the market risk premium is 9 percent. Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital?

Is the stock a good buy and why : McMillen House of Books recently paid a $3 dividend on its preferred stock. Investors require a 6% return on the stock. The stock is currently selling for $45. Is the stock a good buy and why?

How should malik properties proceed and why : Each unit is projected to generate net cash flows of $5,166.15 per year for seven years. How should Malik Properties proceed and why?

How you can use each of these element toward your profession : Organization, time management, and effective communication are key elements to online learning. Discuss how you can use each of these elements toward your professional career as a project manager.

How fast is the top of the tree moving : A dead tree is initially stationary and there is a 30.0-degree angle between the tree and the vertical, How fast is the top of the tree moving (in m/s) just before it hits the ground

What is the equity balance of 2011 : If a non for profit organization has a reported equity balance of $1 million on its 2012 balance sheet, a net income of 200,000 and no other adjustments to equity. what is the equity balance of 2011.

User Account

All Pages