Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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the company's preferred stock pays an annual dividend of 4.5 percent and is currently selling for $60 and there are 100,000 shares outstanding. calculate the cost of preferred stock
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- A company’s share capital consists of 2,800,000 ordinary shares of 25 pence each.During its last financial year the company paid a dividend of 8 pence per share.The market price of the shares is currently £1.75.Calculate the dividend yield correct to one decimal place.arrow_forwardWalker Machine Tools has 6.5 million shares of common stock outstanding. The current market price of Walker common stock is $72 per share rights-on. The company's net income this year is $22.50 million. A rights offering has been announced in which 650,000 new shares will be sold at $66.50 per share. The subscription price plus seven rights is needed to buy one of the new shares. a. What are the earnings per share and price-earnings ratio before the new shares are sold via the rights offering? (Do not round intermediate calculations and round your answers to 2 decimal places.) Earnings per share Price-earnings ratio b. What would the earnings per share be immediately after the rights offering? What would the price-earnings ratio be immediately after the rights offering? (Assume there is no change in the market value of the stock, except for the change when the stock begins trading ex-rights.) (Do not round intermediate calculations and round your answers to 2 decimal places.) Earnings…arrow_forwardA company’s preferred stock pays an annual dividend of 4.5 percent and is currently selling for $60, and there are 100,000 shares outstanding. 1. determine the company preferred stocks and the cost of preferred stocks.arrow_forward
- Cremer Incorporated receives a dividend of $5.23 per share. Today's closing price of the stock is $78888.81 The current stock yield to the nearest tenth of a percent is:arrow_forwardMaster Company has 10,000 preferred shares with 2% cumulative dividends with a par value per share of $ 50 and 25,000 common shares at $ 75 par. The company declares the following cash dividends: Year 1 $ 30,000 Year 2 6,000 Year 3 80,000 Required: Determine the dividends for the preferred and common shares for each year. Present your answer graphically and clearly.arrow_forwardYou purchased 357 shares of PQR, Inc., stock on 64% margin when the stock was selling fo $33.9 a share. The stock is currently selling for $36.18 a share. What is your current equity position (in $)? Answer to two decimals.arrow_forward
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