Preparing for their initial public equity offering

Assignment Help Financial Management

Reference no: EM132071924

1. Nick's Marine Company (NMC) currently has a stock price per share of $38. If NMC's cost of equity capital (the discount rate for equity) is 15.2% and capital gains rate (gain/loss in prices relative to today's price) for the next year is expected to be 11.4%, the dividend in the upcoming year (t = 1) should be?

2. Electricity for All (EFA) is preparing for their Initial Public Equity Offering (IPO). Being in a highly regulated industry, and with no plans for expanding, EFA plans to payout all of its earnings as dividends that are expected to the be same. If the expected rate of return on its equity is 8% and a fair IPO price is $63 per share, what is EFA's dividend per share?

Reference no: EM132071924

Questions Cloud

Potential value of expanding the park : A large and fast growing suburb of Rochester is considering expanding the size of its community park system by purchasing over 500 acres of undeveloped

Reverses the advertising and sales relationship : Critics of the percentage-of-sales method of budget setting contend that this method “reverses the advertising and sales relationship”

Why computing a variance is like analyzing the differences : Explain why computing a variance of several numbers is like analyzing their differences. The response must be typed, single spaced.

Identify and describe at least four activities : Parent and family involvement is crucial in early childhood education. Creating strong partnership with families will help support young children in development

Preparing for their initial public equity offering : Electricity for All (EFA) is preparing for their Initial Public Equity Offering (IPO).

Prepare a recap of the model program for your community : Prepare a recap of the model program for your community that you originally shared in the week 2 written assignment. As stated in the Week Two directions.

What is the maximum inventory held in given eoq cycle : It takes 5 days for each order of sugar to be filled. What is the maximum inventory held in a given EOQ cycle?

Formulate market segmentation variables : Using your Chapter 1 output, describe your coffee or tea consumers using the respondentâ€TMs profile as variables.

Calculate profit - loss and balance sheet : The following is the summary of the cash box of sesay for the year ended 31/12/15 - Providing profit/loss and Balance sheet for the year ended 31/12/15

User Account

All Pages