Smith Enterprises Smith Enterprises recently conducted an IPO. In this, Smith received $14 per share from the underwriter, the offering price per share was $16 and the stock price rose to $19 on the first day of trading. Refer to Smith Enterprises. What is the first day return on an investment in the IPO? O 21.42% 15.79% 18.75% 12.56%

Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $64.13. The firm just recently paid a dividend of $3.99. The firm has been increasing dividends regularly. Five years ago, the dividend was just $3.03. After underpricing and flotation costs, the firm expects to net $55.79 per share on a new issue. a. Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company to pay next year? b. Determine the net proceeds, N₁, that the firm will actually receive. c. Using the constant-growth valuation model, determine the required return on the company's stock, rs, which should equal the cost of retained earnings, rr. d. Using the constant-growth valuation model, determine the cost of new common stock, In- C--- a. The average annual dividend growth rate over the past 5 years is %. (Round to two decimal places.)

Vijay

Cost of common stock equity   Ross Textiles wishes to measure its cost of common stock equity. The​ firm's stock is currently selling for ​$74.29.The firm just recently paid a dividend of $4.04.The firm has been increasing dividends regularly. Five years​ ago, the dividend was just ​$2.97.   After underpricing and flotation​ costs, the firm expects to net ​$68.35 per share on a new issue.   a.  Determine average annual dividend growth rate over the past 5 years. Using that growth​ rate, what            dividend would you expect the company to pay next​ year? b. Determine the net​ proceeds, N Subscript n​, that the firm will actually receive. c.  Using the​ constant-growth valuation​ model, determine the required return on the​ company's stock, rs​, which should equal the cost of retained​ earnings, rr. d.  Using the​ constant-growth valuation​ model, determine the cost of new common​ stock, rn.

need part b

The following financial information is available on Rawls Manufacturing Company: Current per share market price $48.00 Current per share dividend $3.50 Current per share earnings $6.00 Beta 1.1 Expected rate of return on market 12.0% Risk-free rate 6.0% Expected long-term growth rate 5.0% Rawls can issue new common stock to net the company $44 per share. Determine the cost of external equity capital using the dividend capitalization model approach. (Compute the answer to the nearest 0.1%.)   a 12.6% b. 14.4% c.13.4% d.12.7%

Dipstick Auto Repairs is selling shares for $42.00 per share and pays a dividend. The projected growth rate for the company is 2.50%. Assuming the stocks required rate of return is 5.0%. What was the last dividend, Do? (Round to two decimals) $1.06 $1.02 $2.08 O $1.75 O $0.85

Assume that you invested $400,000 in a stock that returned 6%, $300,000 invested in another that returned 14%, and $500,000 invested in a third stock that returned 9%. What return did you earn? O 11.30% 12.25% O 10.35% 9.25%

Energy Cat Company stockholders expect to receive a year- end dividend of $5 per share and then immediately sell their shares for $60 dollars per share. If the required rate of return for the stock is 10%, what is the current value of the stock? $65.00 $60.00 $100.00 $59.09 $650.00