Oceanview Hotel's common stock is currently $45 a share. The company expects to pay a dividend of $4 a share at year-end, and the dividend growth rate is 6% a year. What is its cost of common equity?
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- Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year. Themarket price of the stock is $22.40 and the growth rate is 5 percent. What is the firm's cost of equity?Gremlin Industries will pay a dividend of $1.65 per share this year. It is expected that this dividend will grow by 5% per year each year in the future. The current price of Gremlin's stock is $22.20 per share. What is Gremlin's equity cost of capital?The common stock of Bethel Baked Goods is valued at $8.76 a share. The company increases its dividend by 1.5 percent annually and expects its next dividend to be $.65 per share. What is the required rate of return on this stock?
- Salte Corporation is issuing new common stock at a market price of $27.00. Dividends last year were $1.45 and are expected to grow at an annual rate od 6.0 percent forever. What is Salte's cost of common equity?NoGrowth Corporation currently pays a dividend of $2.08 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 14% per year? The price per share if its equity cost of capital is 14% per year is $_______ (Round to the nearest cent.)NoGrowth Corporation currently pays a dividend of $2.00 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year? The price per share if its equity cost of capital is 15% per y ear is $_______ (Round to the nearest cent.)
- Avril Synchronistics will pay a dividend of $1.50 per share this year. It is expected that this dividend will grow by 5% each year in the future. What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 16%?The common stock of Dayton Repair sells for $40.39 a share. The stock is expected to pay $2.01 per share next year when the annual dividend is distributed. The company increases its dividends by 2.00 percent annually. What is the market rate of return on this stock?Bates, Inc. pays a dividend of $1.00 and is currently selling for $32.50. If investors require a 12% returnon their investment from buying Bates stock, what growth rate would Bates Inc. have to provideinvestors?
- Krell Industries has a share price of $21.55 today. If Krell is expected to pay a dividend of $1.08 this year and its stock price is expected to grow to $24.57 at the end of the year. The dividend yeild is? (Round to one decimal place)The capital rate gain is? (Round to one decimal place)The total return is? (Round to one decimal place)Eastern Electric currently pays a dividend of $1.91 per share and sells for $30 a share.If investors believe the growth rate of dividends is 2% per year, what rate of return dothey expect to earn on the stock? If investors' required rate of return is 15 % , whatmust be the rate they expect Of firrn?Jarett & Sons’s common stock currentlytrades at $30.00 a share. It is expected to pay an annual dividend of $1.00 a share at the endof the year (D1 = $1.00), and the constant growth rate is 4% a year.a. What is the company’s cost of common equity if all of its equity comes from retainedearnings?b. If the company issued new stock, it would incur a 10% flotation cost. What would bethe cost of equity from new stock?