What is the cost of retained earnings

Assignment Help Finance Basics
Reference no: EM13263536

A firm's stock is selling for $85. The next annual dividend is expected to be $2.00. The growth rate is 9%. The flotation cost is $5. What is the cost of retained earnings?

Reference no: EM13263536

Questions Cloud

What is the value per share of your firm stock : after which growth should be at a constant rate of 6%. The last dividend paid was $1.00. What is the value Per share of your firm's stock?
Design an algorithm in pseudocode to solve the problem : Sizes are given as the diameter of the pizza in inches. The cost of a pizza is based on the size. Bob would like to know which size of pizza has the lowest cost per square inch. a. Identify the inputs and outputs for this problem.
Determine the self-induced emf in the solenoid : A 100 m long solenoid has a radius of 0.050 m and 1.5 x 10^4 turns. Determine the self-induced emf in the solenoid due to the changing environment
What was the most recent dividends per share paid : What was the most recent dividends per share paid on the stock(hint: you are looking for DO)?
What is the cost of retained earnings : A firm's stock is selling for $85. The next annual dividend is expected to be $2.00. The growth rate is 9%. The flotation cost is $5. What is the cost of retained earnings?
Estimate the shear stress : Estimate the shear stress if this force is ex- erted on a 0.412 cm -thick pine board that is 13.7 cm wide
Calculate the amount of charge q in coulombs : A capacitor of value C=10 uF(microfarads: where 1 uF=10^-6 F) has a voltage of 2 volts across it. Calculate the amount of charge Q,in coulombs,on each plate.
What is the expected rate of return on this stock : while the probability of a normal economy is 55% and the chance of a recession is 25%. What is the expected rate of return on this stock?
What is the variance of the returns on rtf : The probability of a boom is 60% while the probability of a recession is 40%. What is the variance of the returns on RTF, Inc. stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the company debt-to-equity ratio

Jackie Cosmetics Company has total assets of $437,600,000 and a debt ratio of 0.27. Calculate the company's debt-to-equity ratio.

  Computation of stock beta

My company's stock is now selling for $40 a share. The stock is expected to pay $2 dividend at the end of the year. The stock's dividend is expected to increase at a constant rate of seven percent a year forever.

  What would be present value of her deferred annuity

What would be the present value of her deferred annuity - How much must Mary's deposits be each year in order to pay half of Beth's tuition at the beginning of each school each year?

  Corporate investment analysis

As a new analyst, you have computed the following annual rates of return for both Lauren Corporation and Kayleigh Industries. Your manager suggests that because these companies produce similar products,

  Acquisition and shareholder value

An acquisition creates shareholder value: 1. by acquiring business whose fundamental value is lower than purchase price

  What is the current value of this investment

An investment generates $10,000 per year for 25 years. If you can earn 10 percent on other investments, what is the current value of this investment? If its current price is $120,000, should you buy it?

  Estimating price of the stock

EZee Corporation' common stock dividend is expected to grow at 5 percent for the next 2 years and then at 0% indefinitely. If the current dividend is $4 and the required return is 14%,

  Inefficiencies of market

Suppose your uncle made a killing in the stock market yesterday. This implies that markets are inefficient. Determine the correct answer.

  Prepare a multi-step income statement

Prepare a multi-step income statement and a classified balance sheet in proper form using accrual accounting.

  What is operating cash flow for this project

Explain what is the operating cash flow for this project - evaluate a project that will increase annual sales

  Determining present value of annuity

What is the present value of a 3-year annuity of $170 if discount rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

  What is the project payback period

What is the project payback period if the initial cost is $1,575? (Enter 0 if the project never pays back. Round your answer to 2 decimal places.

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