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- Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)Use the commission schedule from Company A shown in the table to find the annual rate of interest earned on the investment. (Note: commissions are rounded to the nearest cent.) Principal (Value of Stock) Commission Under $3,000 $25+1.8% of principal $3,000 to $10,000 $37+1.4% of principal Over $10,000 $107+0.7% of principal An investor purchases 250 shares at $12.22 a share, holds the stock for 51 weeks, and then sells the stock for $14.41 a share. Question content area bottom Part 1 The annual rate is enter your response here%. (Round to five decimal places.)Thipaporn Inc. has the following data. If it uses the residual dividend model, how much total dividends, if any, will it pay out? Which answers? $203,063 $225,000 $213,750 $192,909 Capital budget $1,000,000 % Debt 60% Net income (NI) $625,000
- At year end, Sampson Company's balance sheet showed total assets of $80 million, total liabilities of $50 million, and 1,000,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $2.9 million. If the average P/E multiple in Malta's industry is 16, (and this is an average stock) what should be the price of Sampson's stock? O $50.43 O $46.40 O $44.57 O $41.60the published annual report showed the following: -Operating profit for the year was EGP 5,000,000. -Interest Expense was EGP 800,000. -The group is subject to 20% taxes. -Number of common shares outstanding was 300,000. -The group has 100,000 Preferred stocks of EGP 15 par value. If you know that the group pays 10% dividends for each preferred stock, answer the following questions How much are the total earnings will be available for common stockholders? Calculate the Earnings per share (EPS) and the Dividends per share (DPS) if the board of directors decided to retain 70% of the year's earnings for further investment. 2---is considering replacing a production line with a new, more productive one. You are given the information that follows. The existing production line currently generates $150,000 profit per year and could be sold today for $50,000. The new proposed production line would generate profits of $150,000 per year The new proposed production line requires an initial…Assume a company has 10mm outstanding shares of stock that currently trade at $50 per share. Assume the company cost of equity is 18% and its after-tax cost of debt is 6%. Assume the company has $250mm in long term debt and $50mm of other liabilities. What is the WACC?
- You are given the following information for Lighting Power Company. Assume the company's tax rate is 25 percent. Debt: Common stock: 430,000 shares outstanding, selling for $61 per share; the beta is 1.12. 18,500 shares of 3.7 percent preferred stock outstanding, a $100 par value, currently selling for $82 per share. 6 percent market risk premium and 4.7 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) Preferred stock: Market: 10,000 5.9 percent coupon bonds outstanding. $1,000 par value, 25 years to maturity, selling for 107 percent of par; the bonds make semiannual payments. WACC %ABC Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $67.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The company's capital structure consists of 45% common equity and 55% debt. What is the company’s WACC?Assume that your company is an all-equity firm with 250,000 shares outstanding. The company's EBIT is $2,500,000, and EBIT is expected to remain constant over time. The company pays out all of its earnings each year, so its earnings per share are equal to its dividends per share and this is currently $6.00 per share. The company's tax rate is 40 percent, its current cost of stock, Ks, is 8 percent, and its current stock price is $75 per share. Now assume that the company is considering issuing $3.75 million worth of bonds (at par) and using the proceeds for a stock repurchase. If issued, the bonds would have an estimated yield to maturity of 5 percent or interest of $187,500. The risk-free rate in the economy is 4 percent, and the market risk premium is 5 percent. The company's beta is currently 0.8, but its investment bankers estimate that the company's beta would rise to 0.9 if it proceeds with the recapitalization. Assume that the shares are repurchased at the equilibrium price that…
- Hassel Inc.'s would like to undertake a policy of paying out 45% of its income. Hassel’s latest net income was P1,250,000, and it had 225,000 shares outstanding. What dividend per share should Hassel declare? * Choices: P2.63 P2.14 P2.38 P2.50 P2.26PLEASE START FROM SECTION C INSTRUCTIONS: Answer the following questions, using spreadsheet financial functions to do the calculations. Use the following information about SV Inc. to calculate the company’s Cost of Capital. The stock of SV Inc. sells for $50, and last year’s dividend was $2.10. A flotation cost of 10% would be required to issue new common stock. SVs’ preferred stock pays a dividend of $3.30 per share, and new preferred could be sold at a price to net the company $30 per share. Security analysts are projecting that the common dividend will grow at a rate of 7% a year. The firm can issue additional long-term debt at an interest rate (or a before-tax cost) of 10%, and its marginal tax rate is 35%. The market risk premium is 6%, the risk-free rate is 6.5%, and Supreme Ventures’ beta is 0.83. In its cost-of-capital calculations, SV Inc. uses a target capital structure with 45% debt, 5% preferred stock, and 50% common equity. REQUIRED: SECTION A Calculate the…National Co.’ CFO has provided the following information:· The company’s capital budget is expected to be P5,000,000.· The company’s target capital structure is 75 percent debt and 25 percent equity.· The company’s net income is P4,600,000.If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year? Format: 11.11%
