User Account

All Pages

What is the firm cost of equity

Assignment Help Macroeconomics
Reference no: EM131114848

The market rate of return is 10.8 percent and the risk-free rate is 4.45 percent. Galaxy Co. has 17 percent more systematic risk than the overall market and has a dividend growth rate of 5.5 percent. The firm's stock is currently selling for $39 a share and has a dividend yield of 3.8 percent. What is the firm's cost of equity?

  • 10.87 percent
  • 10.59 percent
  • 12.19 percent
  • 11.27 percent
  • 9.45 percent

Reference no: EM131114848

Questions Cloud

Using internal rate of return for assessing project : Which of the following is a disadvantage of using internal rate of return for assessing a project?
Bank change customer on loan : Suppose that a Bank wishes to realize a real interest rate of 3 percent given on a loan. It expects that inflation over the course of the year will be 4 percent. Then, what nominal interest rate should the bank change this customer on his loan?
When the government pays to build highways : When the government pays to build highways, they affect G (government purchases) by increasing spending. This in turn increases C (consumption) as consumers are paid and able to have more discretionary income.
Discuss the approximate effect on the characteristic : Only the applied voltage is halved, but the frequency is at its normal value.
What is the firm cost of equity : The firm's stock is currently selling for $39 a share and has a dividend yield of 3.8 percent. What is the firm's cost of equity?
Find the total line current drawn by the motor : Find the total line current drawn by the motor when the developed torque is one-half the rated value.
What are some of the diversity ramifications : The diverse employee selection and retention human resource (HR) functions in health care have legal and ethical ramifications. What are some of the diversity ramifications, and how does your (or any) organization characterize components such as m..
Willingness to pay for workouts : Look at the table above. Several times each week Eli works out at a local health club, but because he is not member, he pays a price of $10 each time he shows up to use the club facilities.
Explain the influence of stakeholder in research utilization : Explain the purpose of utilizing research in health administration. Explain the influence and importance of stakeholders in research utilization.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Botswana development process

1. Do you consider Botswana's development process to have been a success? Why or why not? What specifically contributed to its development in the first ten years of independence?

  Nominal holding periodrate of return

a. If you buy the bond for $920, what is its nominal yield to maturity? b. What is the bond's ex-ante real yield to maturity, if the inflation rate is expected toaverage 2% per year over the next 3 years? c. Suppose that after 2 years, you sell the..

  How do you predict the economy will perform in the next two

How do you predict the economy will perform in the next two years given the current state of two of the economic factors you identified? How might your organization be affected by these changes?

  How is the u.s. economy different from a command economy

Economic decisions including what goods and services to produce (supply), how resources are allocated and regulated and how profits are distributed are made and implemented by the government.

  Part-1assume that country a has a population of 500000 and

part-1assume that country a has a population of 500000 and only produces one good-cars. country a produces 100000 cars

  What are 3-general ways in which money can be classified

What are the 3 "general ways" (Money can be classified into 3 group) that you use our monetary tool (the US $) to make your life better Why did some people say "money is the root of all evil" when money has always just been an inamite tool

  Elucidate how the market for corn would be affected

Elucidate how the market for corn would be affected if ethanol, a corn derivative was used to fuel cars in the United States.

  What does it mean for a production process to exhibit

What does it mean for a production process to exhibit "decreasing returns to scale" If a production process exhibits diminishing marginal returns to each of its inputs, will it necessarily also exhibit decreasing returns to scale

  What is key difference of old-fashioned and high tech crises

What is the key difference between "old-fashioned" and "high tech" crises? What are the limits of the interest rate approach to resolving balance of payments crises?

  Differences of the railway labor act

Discuss the similarities and differences of the Railway Labor Act and the Labor Management Relations Act.

  A country has experienced a recession during which

A country has experienced a recession during which, in addition to the decline in output and the increase in unemployment, there is a reduction in interest rates. discuss the possible causes behind this receesio

  Vulnerability analysis

Vulnerability Analysis

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd