Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 11 compute ke and kn under the following circumsta

11 Compute Ke and Kn under the following circumstances: a. D1 = $4.60, P0 = $92, g...

90.2K

Verified Solution

Question

Finance

11

Compute Ke and Kn under the following circumstances:

a. D1 = $4.60, P0 = $92, g = 6%, F = $5.00. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)

b. D1 = $.26, P0 = $25, g = 6%, F = $2.50. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)

c. E1 (earnings at the end of period one) = $5, payout ratioequals 40 percent, P0 = $29, g = 8.5%, F = $2.80. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)

d. D0 (dividend at the beginning of the first period) = $4,growth rate for dividends and earnings (g) = 7%, P0 = $55, F = $5.(Do not round intermediate calculations. Round your answers to 2decimal places.)

Answer & Explanation Solved by verified expert
3.6 Ratings (361 Votes)
a D1 460 P0 92 g 6 F 500 Cost of retained earnings Ke D1 P0 g 460 92 6 005 6 5 6 1100 Cost of new stock Kn D1 P0 F g 460 92 5 6 460 87 6 0052873 6 52873 6 112873 1129 rounded to two decimal places b D1 026 P0 25 g 6 F    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

11Compute Ke and Kn under the following circumstances:a. D1 = $4.60, P0 = $92, g = 6%, F = $5.00. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)b. D1 = $.26, P0 = $25, g = 6%, F = $2.50. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)c. E1 (earnings at the end of period one) = $5, payout ratioequals 40 percent, P0 = $29, g = 8.5%, F = $2.80. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)d. D0 (dividend at the beginning of the first period) = $4,growth rate for dividends and earnings (g) = 7%, P0 = $55, F = $5.(Do not round intermediate calculations. Round your answers to 2decimal places.)

Other questions asked by students

Q

Cost of Units Completed and in ProcessThe charges to Work in Process—Assembly Department for...

Accounting
Q

Stock Repurchase Bayani Bakery's most recent FCF was $49 million; the FCF is expected to grow at...

Finance
Q

How was Rotational Dynamics concept “discovered”? What is the background/history of Rotaional Dynamics?

Physics
Q

1 Graph y 1 2 cos x TI TT V TT 2 1 5 1...

Geometry
Q

valuate the function at each specified value of the independent variable and simplify If an...

Calculus
Q

Perform the elementary row operation 45 2 531 15 Resulting matrix 1 18 RR on...

Algebra
Q

(ASX:CAR) Carsales . Plz look specifically to the company do not be generic . ...

Accounting
Q

Mountain High makes and sells specialty mountain bikes. On June 30, the company had 50...

Accounting
Q

Samson Company is trying to determine the variable and fixed portions of its monthly truck...

Accounting
Q

Puget Sound Divers is a company that provides diving services such as underwater ship repairs...

Accounting
Q

Question 1 The financial controller has supplied you with the following information (#) in s...

Accounting
Q

In the current year, Andrew received a gift of property from his uncle. At the...

Accounting