Sofie Inc. is projecting an annual growth rate at 6%. The most recent dividend paid was P4.00 per share. New common shares can be issued net of floatation cost at P40 each share. What is the approximate cost of new equity?
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Sofie Inc. is projecting an annual growth rate at 6%. The most recent dividend paid was P4.00 per share. New common shares can be issued net of floatation cost at P40 each share. What is the approximate
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- XYZ company's common shares are selling for P30.00 per share, and the company expects to set its next annual dividend at P1.50 per share. All future dividends are expected to grow by 6% per year, indefinitely. In addition, XYZ faces a floatation cost of 20% on new equity issues. What is the floatation-adjusted cost of equity? Express your answer in percentage.A business’s ordinary shares are currently trading at £2.00 (ex dividend) each in the capital market. Next year’s dividend is expected to be £0.14 per share, and subsequent dividends are expected to grow at an annual rate of 5 per cent of the previous year’s dividend. What is the cost of equity?The dividend per share was P27 last year while the current market price of the shares is P135. The growth rate of equity isexpected to be 8%.3. How much the current cost of equity?
- XYZ Co. will pay a $3.20 per share dividend at the end of the year. The dividend growth rate = 8.5% per year Stock Price = $62.20 What is the required rate of return?Next year, BHH Co. is expected to pay a dividend of $3.12 per share from earnings of $4.98 per share. The equity cost of capital for BHH is 12.3%. What should BHH's forward P/E ratio be if its dividend growth rate is expected to be 4.2% for the foreseeable future? The forward P/E ratio is (Round to two decimal places.)Just paid a dividend of $3. Long term growth rate is 2.6% per annum. Cost of equity capital os 11.5% per annum and dividend payout ratio is to remain constant. What price today would you estimate for the shares?
- Waterway Mining Inc.'s shares are currently selling for $187. The current dividend is $5.50 and the required rate of return is 12 percent. What is the expected dividend growth rate? (Round answer to 2 decimal places, e.g. 5.25%.) Dividend growth rate %Cullumber Wok Co. is expected to pay a dividend of $1.70 one year from today on its common shares. That dividend is expected to increase by 5.00 percent every year thereafter. If the price of Cullumber common stock is $17.00, what is the cost of its common equity capital? - Cost of common equity =?%Assume that a company’s shares have an intrinsic value of P125 per share and are trading at P130. This company requires a 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually. How much the company will pay for dividends per share? What is the status of the shares in the market?
- Assume that a company’s shares has intrinsic value P125 per share and is trading at P130. This company requires an 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually. a. How much the company will pay for dividend per share? b. What is the status of the shares in the market?The next dividend payment by Hoffman, Inc., will be $3.05 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. Assume the stock currently sells for $49.70 per share a. What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) b. What is the expected capital gains yie d? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Dividend vield Capital gains yieldThe 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?