If the company issues new common stock, it will sell for $50 per share with a floatation cost of $9 per share. The last dividend paid was $3.80 and this dividend is expected to grow at a rate of 7% for the foreseeable future. What is the cost of new equity to the firm?
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- Answer? ? Financial accounting questionAnle Corporation has a current stock price of $21.99 and is expected to pay a dividend of $1.00 in one year. Its expected stock price right after paying that dividend is $23.92. a. What is Anle's equity cost of capital? b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain? a. What is Anle's equity cost of capital? Anle's equity cost of capital is ☐ %. (Round to two decimal places.)Anle Corporation has a current stock price of $21.38 and is expected to pay a dividend of $1.00 in one year. Its expected stock price right after paying that dividend is $23.19. a. What is Anle's equity cost of capital? b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain? a. What is Anle's equity cost of capital? Anle's equity cost of capital is%. (Round to two decimal places.) LEED
- What is the required return on these financial accounting question?What is the required return on these financial accounting question?NoGrowth Corporation currently pays a dividend of $0.42 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 19.2%? The stock price is $ (Round to the nearest cent.)
- Anle Corporation has a current stock price of $19.71 and is expected to pay a dividend of $0.95 in one year. Its expected stock price right after paying that dividend is $21.84. a. What is Anle's equity cost of capital? b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain? a. What is Anle's equity cost of capital? Anle's equity cost of capital is %. (Round to two decimal places.) b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain? The dividend yield is%. (Round to two decimal places.) The capital gain is%. (Round to two decimal places.)The Evanec Company’s next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.a. What is Evanec’s cost of retained earnings, rs?b. What is Evanec’s percentage flotation cost, F?c. What is Evanec’s cost of new common stock, re?Anle Corporation has a current stock price of $15.42 and is expected to pay a dividend of $0.85 in one year. Its expected stock price right after paying that dividend is $17.47. a. What is Anle's equity cost of capital? b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain? GELEID a. What is Anle's equity cost of capital? Anle's equity cost of capital is% (Round to two decimal places)
- The Evanec Company s next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share. What is Evanec's cost of retained earnings, rs? What is Evanec's percentage flotation cost, F? What is Evanec's cost of new common stock, re?If ROE > rS, then a company will increase shareholder value (stock price will go up) when retaining earnings and reinvesting them within the company. Assume a firm has ROE = 20% and rS = 15% . Next period's earnings (E1) will be $8 per share. Calculate the share price if the firm retains 25% of its earnings (and pays out 75% as a dividend). Calculate the share price if the firm retains 50% of its earnings (and pays out 50% as a dividend). What is the difference in price? A.) $7.50 B.) $2 C.) $11.25 D.) $20 E.) $15Provide answer