Expected cash dividends are $2, the dividend yield is 6%, flotation costs are 3% of price, and the growth rate is 4%. Compute the approximate cost of new common stock. a. 12.29% b. 11.19% c. 10.19% d. 9.94%
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- The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If the flotation cost is 10% of the issue’s gross proceeds, what is the cost of external equity, re?Expected cash dividends are $2, the dividend yield is 6%, flotation costs are 3% of price, and the growth rate is 4%. Compute the approximate cost of new common stock. a. 12.29% b. 11.19% c. 10.19% d. 9.94%Compute the approximate cost of new common stock on these financial accounting question?
- Financial Accounting Question please answerGive typing answer with explanation and conclusion Expected cash dividends are $4.00, the dividend yield is 6%, flotation costs are 4% of price, and the growth rate is 5%. Compute the approximate cost of new common stock.Do= $5/ share. Future dividend growth rate = 7% / year. Stock price=? When the required return = 16% A) $54.16 B) $61.07 C) $59.44 D) $32.74
- If D1 = $1.25, g (which is constant) = 4.7%, and P = $29.00, what is the stock’s expected dividend yield for the coming year? A. 4.44%B. 4.66%C. 4.48%D. 4.31%A firm will start paying dividend of $3 per year from year-3. The return on equity is 15% and the pay-out ratio is 60%. If the investors required rate of return is 20% compute the current price of Stock. a. $ 20.00 b. $ 21.43 C. $ 14.88 d. $ 15.00If D₁ = $2.00, g (which is constant) = 4.7%, and Po = $21.00, then what is the stock's expected dividend yield for the coming year? a. 9.10% O b. 9.97% c. 10.53% d. 8.70% O e. 9.52%
- For Company ABC, if stock price P0 = $30; dividend paid at the end of period 1 D1 = $3.00; growth rate g = 5%; What’s the required rate of return for equity holder rs = ? If the flotation cost F = 10%; What’s the required rate of return for equity holder rs = ?D1 = $1.25, g = 4.7%, P0 = $26, find the dividend yield for the next year 5.12% 5.34% 4.77% 4.81%If D1 = $1.25, g (which is constant) = 4.7%, and P0 = $42, what is the stock's expected dividend yield for the coming year? Select the correct answer a. 3.12% b. 2.84% c. 3.40% d. 2.56% e. 3.68%