Edna Recording​ Studios, Inc., reported earnings available to common stock of ​$4,200,000last year. From those  earnings, the company paid a dividend of ​$1.28 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 30​% debt, 15​% preferred​ stock, and 55​% common stock. It is taxed at a rate of 21​%.   a.  If the market price of the common stock is ​$46 and dividends are expected to grow at a rate of 6​% per year for the foreseeable​ future, what is the​ company's cost of retained earnings financing​? b.  If underpricing and flotation costs on new shares of common stock amount to ​$7 per​ share, what is the​ company's cost of new common stock financing​? c.  The company can issue ​$2.01 dividend preferred stock for a market price of ​$34 per share. Flotation costs would amount to ​$4 per share. What is the cost of preferred stock financing​? d.  The company can issue ​$1,000​-par-value, 8​% annual​ coupon, 5​-year bonds that can be sold for ​$1,290 each. Flotation costs would amount to ​$20 per bond. What is the​ after-tax cost of debt​ financing? e.  What is the WACC​?

The following statement of financial position information relates to Tufa Co, a company listed on a large stock market which pays corporation tax at a rate of 30%.   $M $M Equity and Liabilities     Share Capital 17   Retained Earnings 15         Total Equity   32 Non-Current Liabilities     Long-Term Borrowings 13   Current Liabilities 21         Total Liabilities   34       Total Equity and Liabilities   66   The share capital of Tufa Co consists of $12M of ordinary shares and $5M of irredeemable preference shares. The orfinary shares of Tufa Co have a nominal value of $0.50 per share, an ex-divident market price of $7.07 per share and a cum dividend market price of $7.52 per share. The dividend for 20X7 will be paid in the near future. Dividends paid in recent years have been as follows:   Year 20X6 20X5 20X4 20X3 Dividend ($/Share) 0.43 0.41 0.39 0.37…

Quantitative Problem: Andrews Corporation has income from operations of $223,000. In addition, it received interest income of $22,300 and received dividend income of $31,100 from another corporation. Finally, it paid $11,600 of interest income to its bondholders and paid $46,800 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax? Do not round intermediate calculations. Round your answer to the nearest dollar.

During the year just ended, Spriha’s distribution had pretax earnings from operations of $2,290,000. In addition, during the year it received $150,000 in income from interest on bonds & received $88,000 in income from dividend on common stock holding in Microsoft. Spriha’s distribution company is in the 40% tax bracket & is eligible for 70% dividend exclusion.*Interest income received by the company is treated as ordinary income. a. Find the tax and after-tax amount attributable to the interest income.b. Find the tax and after-tax amount attributable to the dividend income

The Esposito Import Company had 1 million shares of common stock outstanding during 2024. Its income statement reported the following items: income from continuing operations, $5 million; loss from discontinued operations, $1.8 million. All of these amounts are net of tax. Required: Prepare the 2024 EPS presentation for the Esposito Import Company. Note: Amounts to be deducted should be indicated with a minus sign. Round your answers to 2 decimal places. Earnings per share: Income from continuing operations Loss from discontinued operations Net income

On June 30, Rae Corporation had a market price of $100 per share of common stock. For the previous year, Rae paid an annual dividend of $8.00 per share. Compute the dividend yield for Rae Corporation.

The balance sheet of Colton corporation shows long term debt of $50 million Shareholders equity of $50 million While the income statements shows ebit of $14.1 million and interest expenses of $5 million If Colton has a tax bracket of 40% what is the roe?

Rudyard Corporation had 130,000 shares of common stock and 13,000 shares of 8%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $430,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%.What is Rudyard's basic EPS?   Multiple Choice   $2.51.   $2.28.   $4.11.   $3.31.

Cost of capital Edna Recording Studios, Inc., reported earnings available to common stock of $4,400,000 last year. From those earnings, the company paid a dividend of $1.25 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 45% debt, 15% preferred stock, and 40% tions common stock. It is taxed at a rate of 29%. a. If the market price of the common stock is $43 and dividends are expected to grow at a rate of 9% per year for the foreseeable future, what is the company's cost of retained earnings financing? b. If underpricing and flotation costs on new shares of common stock amount to $7 per share, what is the company's cost of new common stock financing? c. The company can issue $1.79 dividend preferred stock for a market price of $31 per share. Flotation costs would amount to $5 per share. What is the cost of preferred stock financing? d. The company can issue $1,000-par-value, 12% coupon, 9-year bonds that can be sold for $1,130 each.…

Carla Vista Corporation had net income of $42,000 for the year ended December 31, 2023, and weighted average number of common shares outstanding of 10,000. The following information is provided regarding the capital structure: 1. 2. (a1) (a2) 8% convertible debt, 210 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year. The income tax rate is 35%. The bonds were issued at par ($1,150 per bond). No bonds were converted during the year. 3% convertible, cumulative $100 preferred shares, 1,000 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year. Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share eTextbook and Media