What is the cost of equity from retained earnings

Assignment Help Finance Basics
Reference no: EM13300495

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $42.50; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach? ?

Answer

a. 9.96%
b. 11.68%
c. 7.95%
d. 9.58%
e. 11.30%

 

Reference no: EM13300495

Questions Cloud

Calculate tims australian taxable income : Calculate Tims Australian taxable income and Australian tax payable for the year ending
What is the average power of each laser pulse : A LASIK vision correction system uses a laser that emits 10 ns-long pulses of light, each with 2.5 mJ of energy. What is the average power of each laser pulse
Determine deviation at the top of trajectory caused by wind : A fireworks shell is launched vertically from point A with speed sufficient to reach a maximum altitude of 500ft. A steady horizontal wind causes a constant horizontal acceleration of 0.5ft/sec^2, but does not affect the vertical motion.
What is the total energy stored in this circuit : A 7.00 uF capacitor is initially charged to a potential of 16.0V. What is the total energy stored in this circuit
What is the cost of equity from retained earnings : Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $42.50; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?
What is the steady-state concentration of salt in the tank : A two thousand gallon tank has two influent streams. Influent one has a flow of 20 GPH and a salt concentration of 100 mM; influent two has a glow of 15 GPH and a salt concentration of 200 mM. What is the steady-state concentration of salt in the ..
Descriptive statistics : Descriptive statistics (5-number summary, mean, mode, range and standard deviation) for each of the four variables along with an explanation of what the descriptive statistics tell us about the motion picture industry.
What is the contact area between each tire and the ground : The four tires on the author's car are inflated to an absolute pressure of 2.8 multiply.gif 105 Pa.what is the contact area between each tire and the ground
Explain the purpose of the sodium carbonate in part a : What is the purpose of the sodium carbonate in Part A. Why do we add glacial acetic acid in Part 1B when we react N,N-dimethylaniline, but we don;t use it with the other aromatic couplings reagents

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine strategic planning and capital budgeting

Determine strategic planning, capital budgeting, and operations budgeting different and discuss advantages of budgeting?

  Effective investment and financial planning strategies

Managers should learn how to use statistical techniques to time, and forecast, as accurately as possible, changes in basic micro and macroeconomic factors.

  What is percentage cost of capital fo rpost-horizon period

After this, the free cash flows are expected to grow at a constant rate of 5%, and the capital structure will stabilize at 45% debt with an interest rate of 6.9%. What is the percentage cost of capital for the post-horizon period?

  How long before the savings account be sufficient

The Pebble Creek coach took the funds and invested them in a savings account that earns .4% per month. How long before the savings account be sufficient to buy the new uniforms?

  Calculate megastructure degree of combined leverage

The Megastructure Airplane Company has the following modified income statement (RM 000) at 150,000 units of production.

  Time value of money concepts and present value

Assume a State of Maryland bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5%, how much is the bond worth today?

  What are the projects net present value

If the firm's cost of capital is 12%, what are the project's net present value and internal rate of return?

  Jossiah and jemima

Jossiah and Jemima Benson have recently married and in planning their future have decided to solicit the services of a financial advisor with the aim of implementing their short and long term lifestyle goals and financial plans. Jossiah and Jemima ar..

  What factors influence a u.s. business firm to go overseas

What factors would influence a U.S. business firm to go overseas? Prepare a 250- to 300-word analysis and feel free to incorporate your consideration for non-financial factors.

  Explain difference to a local investment club gathering

The stock of Lansing Company has a beta of 1.2. Lansing earned an annual return of 14% during a period when the return on the market portfolio was 12.5%.

  Why is cost associated with internal equity

Distinguish between internal equity and new ordinary shares?

  What is the npv of the lockbox project

The daily interest rate is 0.016 percent. What is the NPV of the lockbox project if the bank charges a fee of $210 per day?

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