Accounting 404

Boehm Incorpo stepd is judge to invent a $1.50 per share divid final stage at the end of this class (i.e., D1 = $1.50). The dividend is expected to take at a unvarying deem of 7% a year. The inevitable drift of riposte on the conduct, rs, is 15%. What is the value per share of Boehms origin? Nicks Enchiladas integ swan has preferent wrinkle large that pays a dividend of $5 at the end of each(prenominal) year. The preferred sells for $50 a share. What is the derivations required rate of return? A fraternity currently pays a dividend of $2 per share (D0 = $2). It is estimated that the companys dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 7% thereafter. The companys stock has a of import of 1.2, the risk-free rate is 7.5%, and the trade risk premium is 4%. What is your estimate of the stocks current price? LL Incorporateds currently outstanding 11% coupon bonds put one across a allow to maturity of 8%. LL believe s it could issue upstart bonds at par that would provide a similar yield to maturity.

If its borderline tax rate is 35%, what is LLs after-tax court of debt? Burnwood tech plans to issue some $60 par preferred stock with a 6% dividend. A similar stock is exchange on the market for $70. Burnwood must pay floatation cost of 5% of the issue price. What is the cost of the preferred stock? Summerdahl hangouts common stock is currently merchandise at $36 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year (D1 = $3.00), and the dividend is expected to grow at a constant rate of 5 % a year. What is its cost of common equity?! If you loss to reap a full essay, order it on our website: BestEssayCheap.com

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