Reference no: EM131977337
Question: 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 $24.00 per share; its last dividend was $2.50; and it will pay a $2.60 dividend at the end of the current year.
Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. %
If the firm's beta is 0.70, the risk-free rate is 7%, 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. %
If the firm's bonds earn a return of 10%, 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 cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. %
|
Find the dollar-weighted rate of return
: Fund XYZ has unit values (prices) of 1.000 on January 1, 2016, 1.040 on July 1, 2016, and 1.025 on December 31, 2016. A fund manager receives contributions.
|
|
What is the angular acceleration of radius wheels
: A powerful motorcycle can accelerate from 0 to 36 m/s in 4.5 s. What is the angular acceleration of its 0.220-m-radius wheels?
|
|
Prepare entries to reflect correct land and buildings
: Spitfire Company was incorporated on January 2, 2018. Prepare entries to reflect correct land, buildings, and depreciation accounts at December 31, 2018.
|
|
Relate to the formation of our solar system
: How does angular momentum relate to the formation of our solar system. If possible give an example or an analogy as to how they relate.
|
|
Find what will be the firm cost of common equity
: If the firm's beta is 0.70, the risk-free rate is 7%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM.
|
|
Explain the strengths of the budgetary process in texas
: How do counties in Texas differ from cities in their powers, duties, and responsibilities, and which do you think has more advantages?
|
|
Analyse ability of management to manage their fixed assets
: Topic: Analysis of Financial Performance. Analyse the ability of management to manage their fixed and total assets for each of the two companies
|
|
What is the balance in fund c at the end of year
: In fund A, $100,000 accumulates at an annual nominal rate of interest j compounded semiannually to $130,666.52 in 4 years.
|
|
How would you respond to the employee morale problem
: You have just been appointed to assist the new court administrator for a medium-sized court system with approximately 75 employees and 5 full-time courts.
|