Digby's balance sheet has $80,975,000 in equity. Further, the company is expecting a net income of 4,000,000 next year, and also expecting to pay $5,000,000 in dividends. If there is no new stock issued what will be Digby's book value? a. $79,975,000 b. $44,189,000 c. $34,189,000 d. $89,975,000

8a. Find the Net Asset Value (NAV) of a company with 350 million dollars in assets, 30 million in liabilities, and 8 million in outstanding shares. b.If a year from now, after you bought the stock, the stock has a market value of $45, are you happy with your buy? Explain

Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is expected to sell for $61 at the end of the year. If its equity cost of capital is 9%, what is the expected capital gain from the sale of this stock at the end of the coming year? .... O A. $57.34 O B. $5.04 OC. $55.96 O D. $3.66 ..

This year, Hope Corporation paid a dividend of $0.50 per share.  The company expect dividends to increase by 4.5% each year forever.  If investors require a return of 12%, what is the value of a Hope Corporation share today? a. $6.67 b. $6.97 c. $4.17 d. $7.47 e. $0.50

IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 8% a year. The price of IBM is $80 per share. What is IBM's cost of equity capital? ..... A. 9.45% B. 9.98% C. 10.5% D. 8.4%

A company’s common stock is currently selling at $40 per share. Its most recent dividend was $1.60, and the financial community expects that its dividend will grow at 10% per year in the foreseeable future. What is the company’s equity cost of retained earnings? If the company sells new common stock to finance new projects and most pay $2 per share in flotation costs, what is the cost of equity? Be sure to include your work for all calculations.

The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 8% per year in the future. Shelby's common stock sells for $30 per share, its last dividend was $1.50, and the company will pay a dividend of $1.62 at the end of the current year.   Using the discounted cash flow approach, what is its cost of equity? Round your answer to two decimal places.   % If the firm's beta is 1.8, the risk-free rate is 10%, and the expected return on the market is 12%, then what would be the firm's cost of equity based on the CAPM approach? Round your answer to two decimal places.   % If the firm's bonds earn a return of 10%, then what would be your estimate of rs using the own-bond-yield-plus-judgmental-risk-premium approach? (Hint: Use the mid-point of the risk premium range.) Round your answer to two decimal places.   % On the basis of the results of parts a–c, what would be your estimate of Shelby's cost of equity? Assume Shelby values each approach equally. Round your answer…

Now or Later, Inc. recently paid $2.10 as an annual dividend. Future dividends are projected at $2.5, $3 and $4 over the next three years, respectively. At the end of the third year, you expect to sell the stock for $34. The stock of the company is selling for $34 today. How much added wealth is expected from your investment in the stock given that the expected return is 6%

Use Excel for this question: A company announced that it will pay a $2.00 dividend, a $2.50 dividend, and a $3.70 dividend in years 1, 2, and 3, respectively. A year 3, the dividends are expected to grow at 6% every year. What is the price of this stock today, given an 7% rate of return? O $327.23 O $342.34 O $311.46 O $389.76

NTT Corp is expected to pay a $2.80 annual dividend to its common shareholders next year. Analysts expect these dividends to grow indefinitely at a 6.5 percent annual rate. If the required rate of return on the common stock is 10.8 percent, what is the intrinsic value of the common stock? a. $56.28 b. $61.44 c. $65.12 d. $69.35