What is the company cost of equity

Assignment Help Finance Basics
Reference no: EM131041514

The Lo Tech Co. just issued a dividend of $2.90 per share on its common stock. The company is expected to maintain a constant 8percent growth rate in its dividends indefinitely.

If the stock sells for $43.70 a share, what is the company's cost of equity?

Reference no: EM131041514

Questions Cloud

Calculate the annualized rate of return : Enter your answer into blackboard as a percentage rounding to two decimal places. For example if your answer is 1.25 percent then you should enter "1.25".
Essay - the australian hospitality industry : Select one of the following topics and write a 1000 word essay. The Australian Hospitality Industry - Importance and challenges. The Australian Tourism Industry - Importance and challenges
How to calculate the new ratio or the new new capital : (Hint: I am not asking you to explain how to calculate the new ratio or the new new capital. I am asking you to tell what actions the bank will take to implement the required changes.)
Business perspectivecategorize the backlog : Using the same case study in Assignment 1 and building upon the work you have already completed you need to undertake the following tasks:
What is the company cost of equity : The Lo Tech Co. just issued a dividend of $2.90 per share on its common stock. The company is expected to maintain a constant 8percent growth rate in its dividends indefinitely. If the stock sells for $43.70 a share, what is the company's cost of e..
Does the refugee situation influence the balance of payments : Do the findings of this article apply to the current situation of the United States? Why or why not? Again, be clear in defending your position.
Opportunity to invest in a project : Initial investment is $1,500. NPC has the that has a 75% chance of generating $500 per year for 7-years under good conditions or a 25% chance of generating $opportunity to invest in a project 25 per year for 7-years.
Resolve money dispute in relationship : Explain why Financial plans must be psychologically and financial sound. What is the best way to resolve money dispute in relationship.
What is the conversion value of the stock : The Petersen Corporation recently issued $2,000,000 worth of convertible bonds with a $1,000 par value. The conversion ratio is 1:40. (That means that one bond can be converted into 40 shares of stock.) a) What is the conversion value of the stock..

Reviews

Write a Review

Finance Basics Questions & Answers

  Objective type questions on bond valuation

Objective type questions on bond valuation and An increase in the level of wealth in the economy

  Mn equation-sales increase

Broussard Skateboard's sales are expected to increase by 15% from S8 million in 2013 to S9.2 million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

  How much will each of her children receive from diane estate

Diane has separate property valued at $75,000 and Sam has separate property valued at $90,000. If Diane were to die intestate in Texas, how much will each of her children receive from Diane's estate?

  Appropriate to use the current wacc

When a firm is evaluating the purchase of a business that is unrelated to its current business, it is appropriate to use the current WACC of the firm that is purchasing the business?

  You have been asked to make a short presentation at your

you have been asked to make a short presentation at your companys annual capital budget meeting to present an analysis

  Determining weighted average cost of capital

Global Technology's capital structure is given below, The after tax cost of debt is 6.5%; the cost of preferred stock is 10%; and the cost of common equity is 13.5%.

  Suppose you own stock in a company the current price per

suppose you own stock in a company. the current price per share is 25. another company has just announced that it wants

  You are leasing a car worth 32000 for 36 months you put

you are leasing a car worth 32000 for 36 months. you put down 1200 now and agree to monthly payments. the residual

  Global financing and exchange rate topic

Prepare a 1,050- to 1,750-word paper in which you analyze the following global financing and exchange rate topic:

  What is the value of the real option to delay investment

What is the value of the real option to delay investment in regasification capacity?

  Calculate the current ratio

Calculate the current ratio based on the following information: cash = $14,870; accounts receivable = $22,108; prepaid $3,010; supplies = $927; equipment = $62,150; accumulated depreciation = $13,750; accounts payable = 28,000. Round to two decimal p..

  The ceo of the parent company agrees with numerous

the ceo of the parent company agrees with numerous practitioners who promote the use of nonfinancial measures as well

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