FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- ok Suppose Wacken, Limited just issued a dividend of $2.52 per share on its common stock. The company paid dividends of $2.02. $2.09, $2.26, and $2.36 per share in the last four years. If the stock currently sells for $71, what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Cost of equity using arithmetic growth rate Cost of equity using geometric growth rate 4.96 % 5.68 %arrow_forwardA company has an ROE of 12% and payouts 41% of its earnings as dividends. It is planning to pay a $3.02 dividend next year with a current stock price of $40. What is the company's dividend growth rate? Express your answer as a percentage and round to two decimals.arrow_forwardYour company had net income of $82,500 for the year just ended. Dividends of $35,250 were paid on the company's beginning equity of $907,500. If the company has 62,000 common shares outstanding with a current market price of $7.50 per share, what is the required rate of return on the shares assuming a constant sustainable growth rate of dividends? Options 13.18% 13.51% 13.84% 14.17% 14.50%arrow_forward
- A company has reported noncontrolling interests in the latest financial reports, as follows: Net income attributable to NCI Noncontrolling interest in shareholders' equity 772.0 11,556.0 Dividends paid on noncontrolling interests in the CFS 193.0 If net income attributable to NCI grows by 8.0% and the NCI dividend pay-out ratio is 16.0% then what will be reported, in the next balance sheet, for NCI? Select one: 12,196.8 12,123.0 12,256.4 12,135.0arrow_forwardIf Big Amp, Inc. stock closed at OMR36 and the current quarterly dividend is OMRO.75 per share, what dividend yield would be reported for the stock in The Wall Street JournalRarrow_forwardFind the average annual growth rate of the dividends for each firm listed in the following table: What is the average annual growth rate of the dividends paid by Loewen? % (Round to two decimal places.) Data table ... (Click on the following icon in order to copy its contents into a spreadsheet.) Dividend Payment per Year Firm 2006 2007 2008 2009 2010 2011 Loewen $1.02 $1.06 $1.10 $1.21 $1.27 $1.32 Morse $1.12 $0.80 $0.90 $1.30 $1.25 $1.45 Huddleston $1.25 $2.25 $3.70 $3.75 $3.90 $5.00 Meyer $2.40 $2.00 $2.10 $2.74 $2.80 $2.96 Print Done - ☑arrow_forward
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