Common stock

The Cost of Preferred Stock: The company doesn’t have issued and outstanding Preferred stock 11. The cost of Equity: Required rate of return on Equity (rE) Calculation : rE = rF + B ( rM + rF) Assumption: Risk Free rate, rF = 3.0% Market rate, rM = 11% rE = 3.0% + .39 ( 11%-3%) rE = 3.0% + 0.39 x 8% = 3.0 + 3.12 = rE = 6.12 12. The cash dividend yield on the Common Stock Is $0.432 per share paid quarterly 13. The Weighted Average

In Lowe’s equity capital, retained earnings have been the most variable factor and is common with large firms like Lowe’s. Their retained earnings have weakened as the company had returns capital to shareholders through cash dividends and repurchase of common stock even though the company has consistently had net profits throughout the years. In January 2016, Lowe's paid $981 million while paying $868 million the prior year. With $3.7 billion of repurchases in each year, the activity of share repurchase

three available strategies or alternatives that Intel could undertake in terms of cash disbursement policies. First, it could continue or expand its market-repurchase program. Secondly, Intel could declare dividends to its shareholders on existing stocks. The last strategy is to put together a package of two unique securities: 1) A distribution of a two-year put warrant to its existing shareholders. 2) A distribution of 10-year convertible subordinated debentures to new

Gonzales food stores. This company is seeking outside funding such as bonds, stocks and “going public.” In addition, we will review the most advantageous methods of investing and explore the different financial markets and what best fits the needs of this company. A, brief overview of the different vehicles available to utilize when investing. The financial market is where investors trade commodities, stocks, mutual funds, stocks, bonds, and traditional bank accounts which all can accrue interest. The

Stocks play a significant part in our economy. For many investors, stock splits seem to be too great of deal. Everyone loves a good deal. It is a Buy One Get One stock or more for free deal for the investors. Stocks can split into any ratios, but the most common ratio is 2-for-1, 3-for-1, and 3-for-2. Splits of 4-for-3, 5-for-2, and 5-for-4 have been offered to the investors in the past. Recently, Apple (AAPL) surprised content investors by declaring a massive 1-for-7 stock split and announcing a

Are you just starting out in the stock market? If so, you may be bewildered by the wide variety of stocks and wondering where to put your investment. Aside from the most dominant stocks, there are also other minor ones that are too small to be listed or have just come into the market. These are known as penny stocks and are known for their high risk and unpredictability - they may make enormous returns or the companies may go bust and you may lose all your investments. In this economic turmoil, shares

understand the various factors impacting the dividend policy when deciding how to allocate a firm’s earnings. 2.1.2 Types of Dividend As mentioned earlier, dividends distribution may take multiple forms, below are some of the most common ones. 1) Cash Dividends: Which is the most common method of Dividends payment for its psychological effect on shareholders who usually prefer to collect their returns immediately and in Cash rather than a non-cash form. The problem is that this form of dividends is limited

payments that corporations make to their common stockholders (Gallagher and Andrew, 2013). Dividend per share can be calculated as follow: DPS=(Cash Dividend)/(Outstanding Shares) 2.1.1.2 Types of Dividend Based on Accounting Tools, There are five types of dividend. Cash Dividend Board of director will pay dividend amount in cash to all investors holding company’s stock in specific date. The date of record occurs when dividends are assigned to the holders of stocks. On the date of payment, company issues

Corp. stock $20,000 $19,000 $(1,000) Carolina Co. stock 10,000 9,000 (1,000) Vectorman Co. stock 20,000 20,600 600 Total Portfolio $50,000 $48,600 (1,400) Previous securities fair value adjustment balance -0- Securities fair value adjustment—Cr. $(1,400) During 2011, Carolina Company stock

How to Value Bonds 1. What is the present value of a 10-year, pure discount bond paying $1,000 at maturity if the appropriate interest rate is: a. 5 percent? b. 10 percent? c. 15 percent? 2. Microhard has issued a bond with the following characteristics: Principal: $1,000 Time to maturity: 20 years Coupon rate: 8 percent, compounded semiannually Semiannual payments Calculate the price of this bond if the stated annual