What is best estimate of companys cost of equity capital

Assignment Help Financial Accounting

Reference no: EM13898979

Suppose Massey Ltd. just issued a divi-dend of $.68 per share on its common stock. The company paid dividends of$.40, $.45, $.52, and $.60 per share in the last four years. If the stock currentlysells for $12, what is your best estimate of the company's cost of equity capital?

Reference no: EM13898979

Questions Cloud

The cost-of-goods-sold-administrative expenses : Suppose a company had total assets of $10 million and gross sales of $1 million in 2013. The cost-of-goods-sold was $0.3 million and the administrative expenses totaled $0.2 million in the same year. Take the Profit before Taxes as the net income. Wh..

Origin and development of the universe : Do you agree with Feinberg that the origin and development of the universe can be explained in entirely natural terms in virtue of purely natural laws operating over natural phenomena? Please elaborate a bit.

Committed customer order for the first week : Suppose a manufacturer has made their September MPS for a product. The beginning inventory is 10 units. The MPS for the first week of September is 20 units, while the Committed Customer Order for the first week is 30. Then what is the ATP:D for the f..

Discuss your entire marketing plan : You are a veteran member of the Marketing Department of Proctor and Gamble. You are a Prodoct Manager. Discuss your ENTIRE MARKETING PLAN to do wht you have been directed to do

What is best estimate of companys cost of equity capital : The company paid dividends of$.40, $.45, $.52, and $.60 per share in the last four years. If the stock currentlysells for $12, what is your best estimate of the company's cost of equity capital?

What is the required production quantity : Suppose a manufacturer decides to use the Level strategy to plan its future production capacities. The estimate of the annual demand is 4800 units. The manufacturer plans to keep zero inventories both at the beginning and at the end of the year. What..

Average inventory investment : Jack’s Outlet had an average inventory investment of $2 million last year. The annual cost of goods sold was $4 million. What was the outlet’s inventory turnover last year?

The administrative expenses remain the same : Suppose Company A had Gross Sales of $1 million last year. The cost-of-goods-sold was $0.4 million and the administrative expenses totaled $0.2 million. By how much could the Profit-before-tax increase if the cost-of-goods-sold had been reduced from ..

How an understanding of moral intensity-ethical sensitivity : Explain how an understanding of moral intensity, ethical sensitivity, and situational influence can support ethical behavior individually and among people in an organization (McShane & Von Glinow, 2013), and explain a scenario that depicts one or mor..

User Account

All Pages