What is companys estimated cost of retained earnings

Assignment Help Financial Management
Reference no: EM13907333

Quantix Corp has shares with a beta of 1.3. The risk free rate is 3% and the expected market return is 9%. Its tax rate is 30%. The company's shares currently trade for $45 a share. What is the company's estimated cost of retained earnings?

Reference no: EM13907333

Questions Cloud

Process management in an os : An Operating System could be implemented using a Ready State and Running State. Provide an argument why this is not an efficient arrangement and outline a more reasonable approach to system states and how they are interlinked for process managemen..
What rate of return are you earning on this policy : You just paid $354,000 for a policy that will pay you and your heirs $12,600 a year forever. What rate of return are you earning on this policy?
What weights should it use for purposes of estimating wacc : A company has target values of debt, preferred and common of $23MM, $16MM and $85MM. It has book values of debt, preferred and common of $66MM, $7MM and $18MM. It also has liquidation values of debt, preferred and common of $38MM, $19MM and $6MM. Wha..
Estimate the required return to the issuing company : The formula Do(1+g)/{P(1-f)} + g can be used to estimate the required return to the issuing company on which security?
What is companys estimated cost of retained earnings : Quantix Corp has shares with a beta of 1.3. The risk free rate is 3% and the expected market return is 9%. Its tax rate is 30%. The company's shares currently trade for $45 a share. What is the company's estimated cost of retained earnings?
Shares of common stock outstanding : Tom and Jerry's has 2.1 million shares of common stock outstanding, 2.1 million shares of preferred stock outstanding, and 11.00 thousand bonds. If the common shares are selling for $13.10 per share, the preferred shares are selling for $10.10 per sh..
Prepare a set of non-functional requirements : Prepare a set of non-functional requirements, including operational, performance security, and cultural and political for the fore mentioned scenario:
Yields on comparable risk preferred stocks : Deltona issued preferred shares four years ago at $60 per share, with a promised dividend of $5 per share. The company's tax rate is 35%, and its common stock beta is 0.80. Yields on comparable risk preferred stocks are 11%.
Do you agree with your friend''s actions why or why not : Do you agree with your friend's actions? Why or why not? Should you discuss the situation with your friend? Should you discuss it with your supervisor? Explain your response.

Reviews

Write a Review

Financial Management Questions & Answers

  Predetermined amount of percentage of salary

which of the following is used to only allow you to insure an item when you yourself would suffer a loss should the item be damaged?  In which qualified plan, a predetermined amount of percentage of salary is paid out upon retirement:

  A suppose the second last 127 million and last 767 million

a. suppose the second last 12.7 million and last 76.7 million mortgage loans in loan group 1 in the nationwide

  Weight used for equity in the computation

Weight of Equity FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. If the common shares are selling for $27 per share, the ..

  In use is the periodic inventory system

Show the effect, if any, of each of the following errors on ending inventory, cost of goods sold, gross profit on sales, and net income by placing the appropriate symbol in each column. In use is the periodic inventory system. Use the following symbo..

  Expiration of such spread for various prices of spot gold

The following three call options on gold, all expiring in three months, sell for: What would be the values at expiration of such a spread for various prices of spot gold?

  The dividend irrelevance hypothesis is based

The dividend irrelevance hypothesis is based on all of the following assumptions EXCEPT

  What is your annualized holding period return

You purchased 250 shares of General Motors stock at a price of $72.74 two years ago. You sold all stocks today for $88.44. During this period the stock paid dividends of $4.20 per share. What is your annualized holding period return (annual percentag..

  Required rate of return-net present value

Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $817,322, $863,275, $937,250, $1,019,610, $1,212,960, and $1,225,000 over the next six years. An investment of $83 gen..

  Calculate the change in nii and nim

Calculate the change in NII and NIM. Is this uneven shift in rates more or less likely than a parallel shift? Suppose the bank converts $ 20,000 of RSLs to fixed rate liabilities during the year and interest rates remain constant. What would the bank..

  Health care system has forecast net patient revenue

A health care system has forecast net patient revenue int he first 3 month of the year as follows. January $60 million, February $80 million, March $100 million. 60% of services are usually paid for in the month that they place and 40% in the followi..

  Indifferent between cash now or taking the annuity

1) You have decided to open up a savings account. Your bank has offered you three interest options: A) 10.55% annually, B) 10.40% quarterly and C) 10.30% weekly. Which do you prefer? You just won the Powerball, as a result you have the choice between..

  About the interest rate sensitivity

A bond trader purchased each of the following bonds at a yield to maturity of 10%. Immediately after she purchased the bonds, interest rates fell to 5%. What is the percentage change in the price of each bond after the decline in interest rates?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd