117.XYZ Ltd. earns $ 10/ share. Capitalization rate and return on investment are 10% and 12% respectively. DETERMINE the optimum dividend payout ratio and the price of the share at the payout.

Q: Alibaba Group has a share price of $25 today. If Alibaba Group is expected to pay a dividend of…

A: Given Information :  Current Share Price = $25 Expected Dividend Per Share = $0.75  Growth in stock…

Q: Preferred Stock: The firm has determined it can issue preferred stock at $75 per share p ralue. The…

A: In this problem we have to calculate cost of equity and cost of preference shares and compare them.

Q: Slow 'n Steady Enterprises currently pays an annual dividend of $1.40 /share. Investors expect that…

A: The present value of stock with indefinite dividend payment with no growth is the dividend divided…

Q: Calculate the Return on equity from the following data. OMR Net Profit after Tax 6,00,000 10%…

A: The fraction of net profit after tax and equity share capital is known as return on equity. The…

Q: Panko corporation is expected to have free cash flow to equity (FCFE) of 1.5€ per share in year 1,…

A: Given,FCFE (Free cash flow of Equity) 1=1.5FCFE2=2FCFE3=2.5

Q: Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.76 and a book value of equity…

A: EPS $   1.76Book Value of Equity $ 12.93Average PE Multiple15.01

Q: NoGrowth Industries presently pays an annual dividend of $1.50 per share and it is expected that…

A: Annual dividend = D = $1.50 Equity cost of capital = Ke = 0.12 or 12%   We will use dividend…

Q: Your investment over one year yielded a capital gains yield of 7% and no dividend yield. If the sale…

A: Sale Price of investment=$118Yield rate=7%Dividend=0required:Cost of investment=?

Q: the value of a share of​ NoGrowth's stock is closest​ to:

A: Stock refers to the total amount of capital which is raised by the corporations by the issue of…

Q: Assume that a firm can issue preferred stock that has a $70 par value and pays a 15.0% annual…

A: The expenses related to offering new securities, such as common stock or bonds, to the general…

Q: Shares of the Pacific Electric Company (PEC) have an estimated Beta of 1.10. PEC funds its assets…

A: A company's average after-tax cost of capital from all sources, including common stock, preferred…

Q: 1. Company Yoyo currently pays out a dividend of £2 per share. It reinvests 1/3 of earnings in…

A: Growth rate g = Retention ratio * Return on Investment ( ROI ) Thus, g = 13×15% g = 5%   Current…

Q: Jumbuck Exploration has a current stock price of $2.55 and is expected to sell for $2.68 in one…

A: The cost of equity refers to the equity expense that the company bears to employ the equity capital…

Q: which of the following would be expected to be closest to​ Matilda's stock​ price?

A: Stock valuation is the method of finding the the value of the stock of a company. The present…

Q: Rare Earth Corp. is trading at a forward P/D (price-to-dividend) ratio of 100, a forward P/E ratio…

A: Forward P/D ratio = Price per share / Next expected dividendit is given that Forward P/D ratio =…

Q: Assume a capital structure where stock is 50% and costs 14%, bonds are        40% and cost 8% and…

A: The interest is impacted by tax as it would reduce the interest by the percentage of tax Hence, we…

Q: ABC issued a series of preference share that currently pay dividend of $3.45 per share in…

A: Annual Dividend = $3.45 per shareRequired Rate of Return = 12% = 0.12​

Q: XYZ issued a series of preference share that currently pay dividend of $4.55 per share in…

A: Dividend per share = $4.55Required rate of return = 11% or 0.11