TKK Co., a firm that has 10,000 preferred outstanding shares, determined its financial break-even point at P540,000. The tax rate applicable to the firm is 50%. The dividend yield for the preferred shares is 25% and these shares are trading at a price of P100. How much is the annual interest paid by TKK Co.?
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- Blue Co., a firm that has 10,000 preferred outstanding shares, determined its financial break-even point at P540,000. The tax rate applicable to the firm is 50%. The dividend yield for the preferred shares is 25% and these shares are trading at a price of P100. How much is the annual interest paid by Blue Co.? *The financial breakeven point of Soillnc. is P90,000,while the tax rate applicable to the company is 30%.The company pays 10% interest on the P200,000 outstanding loan. How much is the total preferred dividends distributed? |National Co. has a financial break-even point at P260,000. Th company paid an annual interest of P80,000 and has an applicable corporate tax rate of 45%. How much is annual preferred dividends paid by National Co.?
- GS Co. has a financial break-even point at P260,000. Th company paid an annual interest of P80,000 and has an applicable corporate tax rate of 45%. How much is annual preferred dividends paid by GS Co.Blue Company has a financial break-even point at P163,500. How much is the total preferred dividends to be distributed if Blue Company has an annual interest of P63,500, a total of 5,000 preferred shares outstanding and a tax rate of 40%?A Corporation issued preferred stocks for P120 per share. The issue price is P20 more than the stock's par value. The company incurred underwriting fees of P10 per share. The stocks will earn annual dividends of P12 per share. If the tax rate is 30%, the cost of capital (preferred stocks) is
- The net income of Steel City Corporation is $90,000. The company has 20,000 outstanding shares, and a 100 percent payout policy. The expected value of the firm one year from now is $1,780,000. The appropriate discount rate is 11 percent, and there are no taxes. a. What is the current value of the company assuming the current dividend has not yet been paid? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the ex-dividend price of the company’s stock if the board follows its current policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) At the dividend declaration meeting, several board members claimed that the dividend is too meager and is probably depressing the company's stock price. They proposed that the company sell enough new shares to finance a dividend of $5.70. c-1. Calculate the value of the company under this proposal. (Do not round…The net income of Steel City Corporation is $90,000. The company has 20,000 outstanding shares, and a 100 percent payout policy. The expected value of the firm one year from now is $1,780,000. The appropriate discount rate is 11 percent, and there are no taxes. a. What is the current value of the company assuming the current dividend has not yet been paid? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the ex-dividend price of the company’s stock if the board follows its current policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) At the dividend declaration meeting, several board members claimed that the dividend is too meager and is probably depressing the company's stock price. They proposed that the company sell enough new shares to finance a dividend of $5.70. c-1. Calculate the value of the company under this proposal. (Do not round…The tax rate applicable to Ivan Co. is 20%. The firm pays 5% interest on the P350,000 outstanding loan and the total preferred dividends to be distributed is P16,500. What is the Financial Breakeven point?
- The tax rate applicable to Blue Co. is 20%. The firm pays 5% interest on the P350,000 outstanding loan and the total preferred dividends to be distributed is P16,500. What is the Financial Breakeven point? *Tarbox Tobacco Inc. is all equity financed and generates perpetual annual EBIT of $300. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year. Assume that Tarbox has a 100% payout rate. Tarbox has 1, 500 shares outstanding. The stock holders of Tarbox require a return of 5%. Assume that the tax rate is 0%. What is the price per share for Tarbox stock? (Round to the nearest whole number.)ABC Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $67.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The company's capital structure consists of 45% common equity and 55% debt. What is the company’s WACC?