What is alfa cost of equity for the new issue

Reference no: EM131488342

Question: (Cost of equity) In early 2016, Alfa Corporation issued new common stock at a market price of $30. Dividends last year were $2.00 and are expected to grow at an annual rate of 3 percent forever. Floatation costs will be 4 percent of market price. What is Alfa's cost of equity for the new issue?

Reference no: EM131488342

Questions Cloud

Explain the term pump head : Explain why a positive displacement pump should not be run against a closed system and why a centrifugal pump can be

Overflow and give the final result in base : Add the following 16 bit twos complement integers: 4555 + 32F2. State whether there is a carry and/or an overflow and give the final result in base 10 format.

Find the corporations tax rate : Individual or component costs of capital) Compute the cost of the following: A bond that has $1,000 par value (face value) and a contract or coupon interest.

Large number of possible responders : Online questionnaires enable companies to gather data from a large number of possible responders. For a web-based questionnaire.

What is alfa cost of equity for the new issue : (Cost of equity) In early 2016, Alfa Corporation issued new common stock at a market price of $30. Dividends last year were $2.00 and are expected to grow.

Business impact analysis and risk management : "Business Impact Analysis (BIA) and Risk Management" Please respond to the following:

Calculate and display the sum : Write a C# program that ask the user for two numbers then calculate and display the sum

What will be the firm after-tax cost of debt on the bond : (Cost of debt) LLC International is issuing a $2,000 par value bond that pays 8 percent annual interest and matures in 10 years. Investors are willing to pay.

How supply chain management has helped a company : Cite and explain 2 examples of how supply chain management has helped a company to improve efficiency and effectiveness.

User Account

All Pages