Tinicum Air Freight Inc. will pay an annual dividend of S4.85 a share next year with future dividends increasing by 2.12 percent annually. What is the stock's Cost of Equity if the stock is currently selling for $34.57 a share?

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $28.50 per share; its last dividend was $2.50; and it will pay a $2.70 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.   % If the firm's beta is 2.0, the risk-free rate is 5%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.   % If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.   % If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's…

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.90 dividend every year, in perpetuity.   If this issue currently sells for $80.55 per share, what is the required return?

A company is going to pay $.35, $.50, and $.80 a share over the next three years. After that, the company has stated that the annual dividend will be $1.25 per share indefinitely. What is this stock worth today at a discount rate of 13.45%?

Cullumber Wok Co. is expected to pay a dividend of $1.70 one year from today on its common shares. That dividend is expected to increase by 5.00 percent every year thereafter. If the price of Cullumber common stock is $17.00, what is the cost of its common equity capital? - Cost of common equity =?%

ORcell Co. has the following dividend policy.  Next year, the company will pay a dividend of $3. In year 2 the company will pay a dividend of $2.75.  After year 2, the company expects to decrease its dividend at a constant rate of 3% per year indefinitely.  If the return required by share holders is 13%, what is the price of the stock today? answer must be 17.86

General Motors expects to pay dividends of $7 this year and $9 next year, after that the company expects to grow at a 6% rate for the rest of its life.  What is the value of the stock if investors require an 11% return to purchase the stock?

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.…

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $26.75 per share; its last dividend was $2.00; and it will pay a $2.08 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the firm's beta is 1.5, the risk-free rate is 4%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places. % c. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be rg? Use the judgmental risk premium of 4% in your calculations. Round your answer to two decimal places. d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round…