Explain what are the percentage return on investment

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Reference no: EM13215539

Q 1 The ABC Company has a cost of equity of 13.8 percent, a pre-tax cost of debt of 6.7 percent, and a tax rate of 29 percent. What is the firm's weighted average cost of capital if the weight of debt is 40 percent?

Q 2 One year ago, you puchased 94 shares of ABC stock for $20.9 per share. During the year, you received a dividend of $3.2 per share. Today, you sold all your shares for $25.3. What are the percentage return on your investment?

Q 3 The ABC Co. has $1,000 face value stock outstanding with a market price of $1,036.1. The stock pays interest annually, matures in 18 years, and has a yield to maturity of 10.8 percent. What is the annual coupon amount?

Q 4 Suppose that today's stock price is $30.4. If the required rate on equity is 19.3% and the growth rate is 7.3%, compute the expected dividend

Reference no: EM13215539

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