Finance

The Evanec Company’s next expected dividend, D_1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.
What is Evanec’s cost of retained earnings, r_s?

What is Evanec’s percentage flotation cost, F?

What is Evanec’s cost of new common stock, r_e?

  1. 👍
  2. 👎
  3. 👁
  1. 15 de feb. de 2012 - Following are selected balance sheet accounts for Third State Bank: vault cash= $2 million; U.S. government securities = $5 million; demand deposits = $13 million; ... accounts= $20 million; cash items in process of collection =$4 million; ... Vault Cash $2 million US Gov'tSecurites $5 million Cash under ...

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Finance

    Fletcher Company's current stock price is $36.000, its last dividend was $2.40, and its required rate of return is 12%. If divends are expected to grow at a constant rate, g, in the future and if Rs is expected to remain at 12%,

  2. Finance

    The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks. Required: If the company plans to pay a dividend of $3.85 next year, what growth rate is expected for the company’s stock

  3. Finance

    The Isberg Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.25, the market risk premium is 5.00%, and the risk-free

  4. Financial Management

    A firm's stock is selling for $85, Dividend yield=5%. A 7% growth rate is expected for the common stock. The firm's tax rate is 32%. (question) What is the firm's cost of retained earnings? a)8.16% b)12.00% c)12.35% d)cannot be

  1. Finance

    Butler Corp paid a dividend today of $3.50 per share. The dividend is expected to grow at a constant rate of 8% per year. If Butler Corp stock is selling for $75.60 per share, the stockholders' expected rate of return is:

  2. managerial finance

    Early in 2007, Inez Marcus, the chief financial officer for Suarez Manufacturing, ws given the task of assessing the impact of a proposed risky investment on the firm's stock value. To perform the necessary analysis, Inez gathered

  3. finance (assumptions)

    The cost of capital for common stock is ke=(D1/Po)+g. What are the assumptions of the model? A. growth (g) is constant to infinity B. the price earnings ration stays the same C. the firm must pay a dividend to use this model D.

  4. finance

    1. A bond has a $1,000 par value (face value) and a contract or coupon interior rate of 8%. A new issue would have a flotation cost of 5% of the market value. The bonds mature in 10 years. The firm’s average tax rate is 28% and

  1. math

    If in culture of yeast the rate of growth y'(t) is proportional to the amount y(t ) present at time t, and if y(t) doubles in 1 day, how much can be expected after 3 days at the same rate of the growth? After 1 week (Hint:

  2. Finance

    The Evanec Company’s next expected dividend, D_1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share. What is Evanec’s cost of retained

  3. Finance

    Simtek currently pays a $2.50 dividend (D0) per share. Next year’s dividend is expected to be $3 per share. Aft er next year, dividends are expected to increase at a 9 percent annual rate for three years and a 6 percent annual

  4. Finance

    A person is considering buying the stock of two home health companies that are similar in all respects except the proportion of earnings paid out in dividends. Both companies are expected to earn $6 per share in the coming year,

You can view more similar questions or ask a new question.