Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1- expected cash dividends are $4.00, the dividend

1- Expected cash dividends are $4.00, the dividend yield is 6%, flotation costs are 7% of price,...

50.1K

Verified Solution

Question

Finance

1-

Expected cash dividends are $4.00, the dividend yield is 6%,flotation costs are 7% of price, and the growth rate is 3%. Computethe approximate cost of new common stock. (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)

  • 9.20%

  • 10.45%

  • 9.45%

  • 11.55%

2-

Pedro Gonzalez will invest $22,000 at the beginning of each yearfor the next 8 years. The interest rate is 11 percent. What is thefuture value? Use Appendix C to calculate the answer.

  • $260,898.

  • $289,608.

  • $311,608.

  • $280,644.

Answer & Explanation Solved by verified expert
3.9 Ratings (503 Votes)
1Information provided Expected cash dividend 4 Dividend yield 6 Flotation cost 7 Growth rate 3 The question is solved by first computing the current price of the stock Dividend yield is calculated using the below formula Dividend Yield Annual    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

1-Expected cash dividends are $4.00, the dividend yield is 6%,flotation costs are 7% of price, and the growth rate is 3%. Computethe approximate cost of new common stock. (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)9.20%10.45%9.45%11.55%2-Pedro Gonzalez will invest $22,000 at the beginning of each yearfor the next 8 years. The interest rate is 11 percent. What is thefuture value? Use Appendix C to calculate the answer.$260,898.$289,608.$311,608.$280,644.

Other questions asked by students

Q

Business Costs MC A small business owner sells personalized pens for 1 90 each The...

Statistics
Q

Let f(x, y) = − cos(x + y2 ) and let a be the point a...

Basic Math
Q

Find all solutions of: (a) 4? ≡ 3 ??? 7 (b) 9? ≡ 11 ??? 26 (c) 8?...

Advance Math
Q

A 25.00 mL aliquot of solution has a concentration of 3.813 x 10-5​ M, what is...

Chemistry
Q

Identify three different schools of Buddhism. How are these schools similar in their beliefs and practices?...

Psychology
Q

You want to design a magnetic device to keep cupboard doors closed. What are the design...

Mechanical Engineering
Q

A mass on a string of unknown length oscillates as a pendulum with a period...

Physics
Q

On a dogleg golf hole, one golfer hits the ball 270 yards and then another...

Basic Math
Q

Calculate the first second and third derivatives of y x x 4x Use symbolic notation...

Calculus
Q

What are the cylindrical coordinates of the point whose spherical coordinates are(p, 0, d) ...

Calculus
Q

Discuss the different types of consumption taxes

Accounting
Q

Prepare the journal entries to record the following sales transactions in Flint Corp's books. Flint...

Accounting