Rossdale Company stock currently sells for $72.43 per share and has a beta of 1.20. The market risk premium is 7.30 percent and the risk-free rate is 2.98 percent annually. The company just paid a dividend of $4.21 per share, which it has pledged to increase at an annual rate of 3.65 percent indefinitely. What is your best estimate of the company's cost of equity?

Suppose that a firm with a stock price of $80 just announced that it expects to pay a $100 per share liquidating dividend in 1 year, although the exact amount of the dividend depends on the performance of the company this year. Assume that the CAPM is a good description of stock price returns and that the stock’s beta is 1.5, the market’s expected return is 12%, and the risk-free rate is 5%. 1) Is the stock priced correctly now? 2) What is the alpha of the stock? 3) What would you expect to happen to the stock price in an efficient market after the announcement? Give typing answer with explanation and conclusion

Schnusenberg Corporation just paid a dividend of DO $2.10 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 2.00, the required return on the market is 14.50%, and the risk - free rate is 4.50%. What is the company's current stock price? Do not round intermediate calculations. a. $12.43 b. $11.67 c. $9.13 d. $27.96 e. $34.41 =

Tanrun Inc. is expected to pay an annual dividend of $0.45 per share in one year. Analysts expect the firm's dividends to grow by 6% forever. Its stock price is $38.7 and its beta is 1.7. The risk-free rate is 2% and the expected market risk premium is 4.5%.   2. What is the best guess for the cost of equity? (3+ Decimals)   Pfizer is expected to pay an annual dividend of $1.85 one year from now. Dividends are expected to grow by 2.5% every year and the current stock price is $247.2. The company is in the process of issuing new common stock, with flotation costs of $1.7 per share.     3. What is the cost of new common stock? (3+ Decimals)   Idaho Engineering Inc. has a target capital structure of 29% debt, 10% preferred stock and 61% common stock. The interest rate on new debt is 4.3% (before taxes), the yield on preferred stock is 8% and the cost of retained earnings is 13%. The firm will not be issuing any new stock, and the tax rate is 35%.   4. What is the company's weighted…

Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 6% forever. Its stock price is $34.8 and its beta is 1. The risk-free rate is 2% and the expected return on the market portfolio is 8%. What is the best guess for the cost of equity?

Tanrun Inc. is expected to pay an annual dividend of $0.45 per share in one year. Analysts expect the firm's dividends to grow by 6% forever. Its stock price is $38.6 and its beta is 0.8. The risk-free rate is 2% and the expected market risk premium is 4.5%. 1. What is the best guess for the cost of equity? Recall that both Dividend Growth Model and CAPM can be used to find cost of equity. Here assume the best guess is the simple average of the two.

Anderson​ Motors, Inc. has just set the company dividend policy at ​$0.60 per year. The company plans to be in business forever. What is the price of this stock if   a.  an investor wants a return of 4​%? b.  an investor wants a return of 7​%? c.  an investor wants a return of 10​%? d.  an investor wants a return of 11​%? e.  an investor wants a return of 17​%?

Bavarian Sausage is expected to pay a dividend of $1.7 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5% per year in the future. The company's beta is 1.1, the market risk premium is 5%, and the risk-free rate is 2%. What is the company's current stock price in $?

You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D₁ = $2.25) and has a beta of 0.9. The risk-free rate is 4.7%, and the market risk premium is 6%. Justus currently sells for $29.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Do not round intermediate calculations. Round your answer to the nearest cent. $ es

Birkin Systems is expected to pay a dividend of D1 = $2.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.2, the Market Risk Premium is 6.00%, and the risk-free rate is 4.00%. What is the company's current stock price? (Ch. 9) Group of answer choices 40.00 27.42 32.26 35.48 33.33