Floation-adjusted cost of new common stock

Assignment Help Business Management

Reference no: EM13971261

Wooten Co. has a current stock price of $33.35 and is expected to pay a dividend of $2.03 at the end of next year. the company's growth rate is expected to remain constant at 9.4%. If floatation cost represent 5.% of funds raised, what is the floation-adjusted cost of new common stock?

a. 12.6%
b. 15.5%
c. 13.4%
d. 15.8%

Reference no: EM13971261

Questions Cloud

Options for receiving winnings : You have just won the lottery. You have two options for receiving your winnings. You can receive a lump sum of $5M today or receive payments of $53,000 a month for 10 years starting today. You can earn 5 percent (APR) on your money. Which option s..

What is gross and after-tax return on this investment : Sam Sharp purchased 100 shares of Electric Lighting Inc. (ELI) one year ago for $60 per share, and he also received dividends of $5 per share since then. Now that ELI's stock price has increased to $64.6, Sam has decided to sell his holdings. What is..

Present value of prize : You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $35,000 and will be paid one year from today. Every year thereafter, the payments will increase by 2% annually. What is the present value of your ..

What methodologies have been used for data breaches : What methodologies have been used for data breaches? Different types of attacks ? comparision on attacks how did they happen and how did attackers entered into the system? what are the different companies that have been attacked by these attacks

Floation-adjusted cost of new common stock : Wooten Co. has a current stock price of $33.35 and is expected to pay a dividend of $2.03 at the end of next year. the company's growth rate is expected to remain constant at 9.4%. If floatation cost represent 5.% of funds raised, what is the floa..

What is the future rate of inflation assumed : If their combined life expectancy is 15 years at their retirement, can the Bruckners maintain their standard of living if they have the amount determined above and their funds earn 7 percent after they retire? What is the future rate of inflation ass..

Prepare journal entries to record the issuance : Jackson Corporation has common stock with a par value of $1 per share. Royal Corporation has no-par common with a stated value of $5 per share.

Analyze each csf and use data from the measures : An evaluation of the organization/segment to determine if it is achieving each of the CSFs. Analyze each CSF and use data from the measures indicated in the Balanced Scorecard as support for the conclusions. (2-3 pages)

How do you know if your technical communication successful : How do you know if your technical communication is successful? That is, how can you tell that your message reached the intended audience in the ways that you wanted

User Account

All Pages