a) if the markt price of common stock is $3.60 and dividens are expected to growat a rate of 8% per year for the foreseable future,what is the requeired returned on the company's common stock? b) if underpricing and flotation costs on new shares of common stock amount to $0.40 per share ,what is the company's cost of new common stock financing? c)The company can issue a $1.00 dividend preferred stock for a market price of $10.00 per share.Flotation costs would amount to $0.60 per share. What is the cost of preferred stock financing?
Cost of capital GB timbers GMBh, based in germany,supplier timber products to construstion and manufacturing industries.The company reported after -tax earnings available to common stock of $3,200,000.from these earning ,the management decided to pay dividednd of $0.80 on each of its 4,000,000 common shared out standing.The capital structure of company includeds 30% debt ,40% common stock and 30%
a) if the markt price of common stock is $3.60 and dividens are expected to growat a rate of 8% per year for the foreseable future,what is the requeired returned on the company's common stock?
b) if underpricing and flotation costs on new shares of common stock amount to $0.40 per share ,what is the company's cost of new common stock financing?
c)The company can issue a $1.00 dividend preferred stock for a market price of $10.00 per share.Flotation costs would amount to $0.60 per share. What is the cost of preferred stock financing?
d) In addition, the company can issue $100 par value , 8% coupon , 10 yers bonds that can be sold to for $110 each.Flotation cost would amount to $2 per bond.Use the estimation formula to figure the approximate cost of debt financing.
e) What is the WACC
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