ADB's current share price is Rs20 and it is expected to pay a Rs1 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4% per year. a) What ADB's cost of equity? b) ADB also has preferred stock outstanding that pays a Rs2 per share fixed dividend. If this stock is currently priced at Rs28, what is ADB's cost of preferred stock? c) ADB has existing debt issued three years ago with a coupon rate of 6%. The firm just issued new debt at par with a coupon rate of 6.5%. What is ADB's pre-tax cost of debt? d) Explain why the pre-tax cost of debt is not relevant for the calculation of the Weighted Average Cost of Capital. e) ADB has 5 million common shares outstanding and 1 million preferred shares outstanding, and its equity has a total book value of Rs50 million. Its liabilities have a market value of Rs 20 million. If ADB's common and preferred shares are priced as in parts (a) and (b), what is the total market value of ADB's equity and liabilities? f) ADB faces a 35% tax rate. Given the information in parts (a) – (d), and your answers to those problems, what is ADB's Weighted Average Cost of Capital?

Abercrombie​ & Fitch's common stock pays a dividend of $3.00. It is currently selling for $30.78. If the​ firm's investors require a return of 15 percent on their investment from buying Abercrombie​ & Fitch​ stock, what growth rate would Abercrombie​ & Fitch have to provide the​ investors?

Maynard Steel plans to pay a dividend of $2.82 this year. The company has an expected earnings growth rate of 3.9% per year and an equity cost of capital of 9.5%. a. Assuming that Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. b. Suppose Maynard decides to pay a dividend of $0.95 this year and use the remaining $1.87 per share to repurchase shares. If Maynard's total payout rate remains constant, estimate Maynard's share price. a. Assuming that Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. Maynard's share price will be $ (Round to the nearest cent.)

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.…