National Co., a company with a 25% debt-to-equity ratio, has a weighted average cost of capital of 9%. The firm is growing at a constant rate and does not issue any preferred shares. The after-tax cost of debt is determined at 9%. The expected dividend to be declared by National Co. is P2 and growth rate is 1%. How much is the current price of the ordinary share?

Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 12%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 10.70%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. Hide Feedback Incorrect

X Ltd is currently having 100000 equity shares of the face value of Rs 10 each. It is expected that company will have net profit of Rs 500000/. Due to recessionary condition, company expects 10% return on investment. The equity capitalization is 12%. Find out the market price per share according to Gordon Model under different payout ratios of 40%, 60% and 80%.

1. A company has just declared dividend of GH¢50 per share and this is yet to be paid. The dividend is expected to grow at 10% per annum forever, and price cum Div is GH¢700 per share. What is the cost of equity?

Annual after-tax cost of debt=10% and tax rate=30%. Risk-free rate=5% and market risk premium=8%. The company shares are 1,8 times more volatile than the market. Market price per share is $40 and the company has 12.500.000 outstanding shares. The market value of interest-bearing debt is estimated at $300.000.000. Suppose that the shares of the company trade at fair value. The company has recently paid a dividend of $4 per share. What would be the dividend growth rate?   A) 3,88% B) 7,88% C) 6,88% D) 5,88% E) 4,88% F) OTHER= ___

Jenkins, Inc., has equity with a market value of $22.6 million and debt with a market value of $11.3 million. The cost of debt is 8 percent per year. Treasury bills that mature in one year yield 4 percent per year, and the expected return on the market portfolio over the next year is 10 percent. The beta of the company's equity is 1.11. The firm pays no taxes. a. What is the company's debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the company's weighted average cost of capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the cost of capital for an otherwise identical all-equity firm? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Debt-equity ratio b. Weighted average cost of capital C. Cost of capital 0.50 % %

Blue Co., a firm that grows at a constant rate of 5%, is trying to estimate its weighted average cost of capital. Blue Co. recently paid a P5 per share dividends to its outstanding ordinary shares. The ordinary share of the firm is currently trading at a price of P52.50. What is the cost of equity of the company that will be used for the purpose of determining the weighted average cost of capital? (In percentage, put percentage sign)

Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 12%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 11.70%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

Best Buy Corporation has a book value of equity of $5,000 at the beginning of 2005, and net income of $1,000 for year ended 2005. It pays no dividends, and its cost of equity capital is 10%. It expects return on beginning of year equity to remain constant for 2006 and 2007 and decrease to 10% thereafter. What should its price-to-book ratio be at the end of 2005 (pick closest number)?  a) 1.19 b) 1.01 c) 1.05 d) 1.09

ABC International has an unlevered cost of capital of 10 %, a tax rate of 35 %, and expected earnings before interest and taxes of $26,500. The company has $40,000 in bonds outstanding that have a 7% coupon and pay interest annually. The bonds are selling at par value. What is the cost of equity?