Extruded Elements had Net Income of $25,000,000 last year, and $26,250,000 this year (in line with its long-term earnings growth rate). There are 4,000,000 shares outstanding, and the firm follows a policy of paying 30% of its earnings out as dividends, the required rate of return on extruded's shares is 13%. What is the share price today based on the Gordon growth model?

FedEx Corporation (FDX) has a current share price of $157.62 and is expected to have earnings per share (EPS) next year of $11.32 per share. Analysts expect that FedEx's closest competitor, United Parcel Service, Inc. (UPS), will have earnings next year of $8.37 per share. FedEx's cost of capital is 11%. What is your current estimate of the value of one share of UPS stock using the method of comparables? OA. $213.17 OB. $76.09 OC. $13.92 OD. $116.54 OE. $154.67 OF. None of the above is withing $0.35 of the value of one share of UPS stock.

Growth Company's current share price is $19.95 and it is expected to pay a $1.00 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 3.8% per year. a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a $2.30 per share fixed dividend. If this stock is currently priced at $28.15, what is Growth Company's cost of preferred stock? C. Growth Company has existing debt issued three years ago with a coupon rate of 5.8%. The firm just issued new debt at par with a coupon rate of 6.6%, what is Growth Company's cost of det? d. Growth Company has 5.4 million common shares outstanding and 1.2 million preferred shares outstanding, and its equity has a total book value of $50.1 million. Its liabilities have a market value of $20.3 million. If Growth Company's common and preferred shares are priced as in parts (a) and (b), what is the market value of Growth Company's assets? e, Growth…

c. Growth Company has existing debt issued three years ago with a coupon rate of 5.5%. The firm just issued new debt at par with a coupon rate of 6.2%. What is Growth Company's cost of debt? (Select from the drop-down menus.) The pre-tax cost of debt is the firm's YTM on current debt. Since the firm recently issued debt at par, then the coupon rate of that debt must be the YTM of the debt. Thus, the pre-tax cost of debt is d. Growth Company has 4.7 million common shares outstanding and 1.1 million preferred shares outstanding, and its equity has a total book value of $50.0 million. Its liabilities have a market value of $20.1 million. If Growth Company's common and preferred shares are priced as in parts (a) and (b), what is the market value of Growth Company's assets? The market value of assets is $ million. (Round to two decimal places.) e. Growth Company faces a 22% tax rate. Given the information in parts (a) through (d), and your answers to those problems, what is Growth Company's…

Growth Company's current share price is $20.10 and it is expected to pay a $0.95 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4.5% per year. a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a $2.00 per share fixed dividend. If this stock is currently priced at $28.15, what is Growth Company's cost of preferred stock? c. Growth Company has existing debt issued three years ago with a coupon rate of 6.2%. The firm just issued new debt at par with a coupon rate of 6.3%. What is Growth Company's pretax cost of debt? d. Growth Company has 4.9 million common shares outstanding and 1.2 million preferred shares outstanding, and its equity has a total book value of $50.1 million. Its liabilities have a market value of $20.2 million. If Growth Company's common and preferred shares are priced as in parts (a) and (b), what is the market value of Growth Company's assets? e.…

Sydney Ltd. was paid a dividend of $3.97 last year. If the company's growth in dividends is expected to be 10 percent thereafter forever, then what is the cost of equity capital for Sydney Ltd. if the price of its ordinary shares is currently $26.71? (Round to nearest percentage)

Growth Company's current share price is $20.30, and it is expected to pay a $1.10 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4.2% per year. a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a $2.30 per share fixed dividend. If this stock is currently priced at $28.05, what is Growth Company's cost of preferred stock? c. Growth Company has existing debt issued three years ago with a coupon rate of 5.6%. The firm just issued new debt d. Growth Company has 4.5 million common shares outstanding and 1.1 million preferred shares outstanding, and its equity has a total book value of $50.0 million. Its liabilities have a market value of $19.6 million. If Growth Company's common and preferred shares are priced at $20.30 and $28.05, respectively, what is the market value of Growth Company's assets? e. Growth Company faces a 40% tax rate. Given the information in parts a…

Growth Company's current share price is $20.30 and it is expected to pay a $0.90 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4.4% per year. a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a $2.25 per share fixed dividend. If this stock is currently priced at $28.25, what is Growth Company's cost of preferred stock? c. Growth Company has existing debt issued three years ago with a coupon rate of 6.1%. The firm just issued new debt at par with a coupon rate of 6.6%. What is Growth Company's cost of debt? d. Growth Company has 5.5 million common shares outstanding and 1.4 million preferred shares outstanding, and its equity has a total book value of $50.2 million. Its liabilities have a market value of $19.5 million. If Growth Company's common and preferred shares are priced as in parts (a) and (b), what is the market value of Growth Company's assets? e. Growth…

Ivanhoe Tire Co. just paid an annual dividend of $1.20 on its common shares. If Ivanhoe is expected to increase its annual dividend by 7.10 percent per year into the foreseeable future and the current price of Ivanhoe’s common shares is $11.92, what is the cost of common stock for Ivanhoe? - Cost of common stock?

McPherson Pharmaceutical has common stock that is trading for $75 per share. The company paid a dividend of $5.25 last year. This dividend is expected to increase at a rate of 3% per year. What is the cost of equity capital for McPherson? If McPherson issues new shares with a flotation cost of $2 per share, what is the company’s cost of new equity?(using excel formulas)