The market price of an equity share with face value of Rs 10 is Rs 35, with ROI of 24% and cost of capital of 18%, what will be the Dividend payout ratio?(Use Walter model) a. 10% b. 25% c. 0% d. Cannot be determined

Q: You have assigned the following values to these three firms: Upcoming Dividend $0.60 1.54 0.50 Estee…

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Q: Suppose TRF = 5%, TM12%, and b = 2, what is r, the required rate of return on Stock i? 12% 7% 19% 5%…

A: According to Capital Asset Pricing model ,Ri = Rf + [b * (Rm-Rf) ]whereRi = Required rate of return…

Q: Assume that you are a consultant to Thornton Inc., and you have been provided with the following…

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A: Dividend Discount model is used for calculation of current market price per share based on future…

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Q: If cost of equity is 14 percent, Earnings per share is Rs.18, Dividend payout ratio is 40 percent…

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Q: c=$6, K=$30,  S=$50, r=5%, T=3months WHAT IS THE LOWER BOUND OF CALL? Is there an arbitrage…

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Q: If Net Worth = 14, the Market Value of Assets = 250 with duration of 8.0, the Market Value of…

A: Duration of Assets =(Net Worth/Total Assets*Duration of Equity) + (liabilities/Total Worth*Duration…

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A: The Static Theory of the Capital Structure is one of the Relevance Theory of Capital Structure of…

Q: Your opinion on the investor information ? Chipotle Investor information: Stock Price as of 12/31/19…

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Q: What do you notice about the change in the cost of equity as beta increases? (Select the best…

A: Because you have posted multiple questions , we will answer the first question only. if you want…

Q: f the face value of both the shres is same then which investment out of following. is more…

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A: Information Provided:Dividend( 1) = $1.45Price = $22.50Growth rate = 6.5%

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Q: Calculation of individual costs and WACC BlackRock, Inc. (BLK) has a capital structure that consists…

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Q: Financial Plan Components Cost Weights Weighted Cost A Debt 7.15% ? ? A Equity 5.15%…

A: WACC = We*Ke+Wd*Kd W is weight K is cost e is equity and d is debt

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A: Given Data: Book valueDebt 7896109Equity4003759Cost of Debt = 10.3%Cost of Equity = 14.38%

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A: Discounted cash flow (DCF) refers to a valuation method that estimates the value of an investment…

Q: Beta of stocks of Company SSAL is 1.2, company ABL is 0.9 and Company DSTL is 1. Which amongst the…

A: Beta of SSAL = 1.2 Beta of ABL = 0.9 Beta of DSTL = 1 Let the risk premium = RP Risk free rate = Rf

Q: Steeler Inc.'s CFO hired you as a consultant to help her estimate the cost of capital.  You have…

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Q: What is the firm’s equity multiplier? (Please show work and explain)

A: Information Provided: Return on assets = 0.20 Return on equity = 0.25

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A: The question is based on the concept of Accounting Ratios.

Q: O'Brien Inc. has the following data: TRF = 5.00 % ; RPM = 6.00% ; and b = 1.10. What is the firm's…

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Q: Why is Rs always greater than G?

A: Growth Rate: Growth rate is the expected rate of growth as per the market condition, of a security…

Q: If the D/E ratio of a firm is 1.4, what is the firm's weight on equity? Hint: the formula is on your…

A: Debt to Equity Ratio = de = 1.4

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A: The cost of equity can be calculated from the dividend discount model

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A: Weighted average cost of capital is also known as WACC. It includes the all cost which is incurred…

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Q: Suppose TRF = 5%, M = 12%, and b;= 0.75, what is the cost of equity? 5.00% 10.25% 12.00% 6.00%

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Q: Assume a capital structure where stock is 50% and costs 14%, bonds are        40% and cost 8% and…

A: The interest is impacted by tax as it would reduce the interest by the percentage of tax Hence, we…

Q: Assume that a company’s market beta equals 0.6, the risk-free rate is 5%, and the market return…

A: As per CAPM, Expected Return = Rf +Beta (Rm-Rf)

Q: The lowest rate of return possible is:a. 0%b. -∞c. -100%d. the company’s MARR

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Q: Given the information below. Find the Weighted Average Cost of Capital  Market Value of Equity =…

A: Weighted Average Cost of Capital(WACC) is the average cost of capital. It can be calculated by using…