Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year​ Blaxo's common stock was selling for ​$21.32 but by year end it was only ​$20.17. If the firm paid a total cash dividend of $2.49 during the​ year, what rate of return would you have earned if you had purchased the stock exactly one year​ ago? What would your rate of return have been if the firm had paid no cash​ dividend?

Sandhill Tire Co. just paid an annual dividend of $1.20 on its common shares. If Sandhill is expected to increase its annual dividend by 2.10 percent per year into the foreseeable future and the current price of Sandhill’s common shares is $14.59, what is the cost of common stock for Sandhill?

The price of the stock of Clarkson Corporation went from P50 to P56 last year. In the following year, the dividend was raised to P2.25. However, a bear market developed toward the end of the year, and the stock price declined from P56.00 at the beginning of the year to P48.00 at the end of the year. What is the rate of return (loss) to stockholders?

Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just​ completed, Grips earned ​$3.68 per share and paid cash dividends of ​$1.98 per share ​(D0=$1.98​). ​ Grips' earnings and dividends are expected to grow at 25​% per year for the next 3​ years, after which they are expected to grow 5​% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 14​% on investments with risk characteristics similar to those of​ Grips?

XYZ company is looking for investors.  For an investment (price) of $25 per unit (share) of preferred stock it will pay $1 dividend annually ​XYZ is also issuing (selling) to investors another type of preferred stock for $25.  Unlike the above ordinary preferred, in case of a missed dividend (not enough money “coming down the waterfall”), the unpaid amount any year will be added to its dividend the following year, and continue so until all missed payments aremade.   ​What should be the dividend of this “cumulative preferred” compared to the 1% of the ordinary?

Simplicity is a relatively new firm that appears to be on the road to great success. The company paid their first annual dividend yesterday in the amount of P0.15 a share. The company plans to double each annual dividend payment for the next four years. After that time, they are planning on paying a constant dividend of P2.50 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 13.45 percent?

Reliable Electric is a regulated public utility, and it is expected to provide steady dividend growth of 5% per year for the indefinite future. Its last dividend was $3 per share; the stock sold for $30 per share just after the dividend was paid. What is the company’s percentage cost of equity?

Krell Industries has a share price of $22.35 today. If Krell is expected to pay a dividend of $0.84 this year and its stock price is expected to grow to $24.51 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is 3.8%. (Round to one decimal place.) The capital gain rate is 13.42 %. (Round to one decimal place.)

eliable Electric is a regulated public utility, and it is expected to provide steady dividend growth of 8% per year for the indefinite future. Its last dividend was $2 per share; the stock sold for $40 per share just after the dividend was paid. What is the company’s percentage cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Zimmerman's Landscaping just paid an annual dividend of $2.89 on its common stock. The firm increases its dividend by 3.60 percent annually. What is the company's cost of equity if the current stock price is $40.60 per share?