What is duke cost of common stock equity

Assignment Help Financial Management
Reference no: EM132037939

Duke Energy has been paying dividends steadily for 20 years. During that time, dividends have grown at a compound annual rate of 8%. If Duke Energy's current stock price is $82 and the firm plans to pay a dividend of $5.20 next year, what is Duke's cost of common stock equity?

Reference no: EM132037939

Questions Cloud

What is initial investment outlay for spectrometer : What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?
Considering abandoning store with no debt : Keep, Modernize or Abandon store Fairfield is considering abandoning a store with no debt.
Find option trading to be beneficial investment strategy : Describe a scenario where a private investor might find option trading to be a beneficial investment strategy
What is oxy weighted average cost of capital : what is Oxy's weighted average cost of capital? (WACC)?
What is duke cost of common stock equity : Duke Energy has been paying dividends steadily for 20 years. what is Duke's cost of common stock equity?
Decision about whether to delay paying one of its suppliers : Hand-to-Mouth (H2M) is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or take out a loan.
Difference in present value between using discount rate : You are going to receive $219,000 in 40 years. What is the difference in present value between using a discount rate of 10 percent versus 5 percent?
What is the accumulated value of this annuity : The annual effective interest rate is 5%. What is the accumulated value of this annuity at the end of two years?
The standard deviation of the market-index portfolio : The standard deviation of the market-index portfolio is 10%. Calculate the total variance for an increase of 1.33% in its residual standard deviation.

Reviews

Write a Review

Financial Management Questions & Answers

  Annual coupon payments and semiannual coupon payments

Thirteen years ago a firm issued $1,000 par value bonds with a 5% annual coupon rate and a term to maturity of 20 years. Market interest rates have decreased since then and similar bonds today would carry an annual coupon rate of 4%. What would these..

  What is the required return on the company stock

If the company has a dividend yield of 4.45 percent, what is the required return on the company’s stock?

  Most consistent with the goal of firm value maximization

The project selection method most consistent with the goal of firm value maximization is:

  What will be the realized compound yield to maturity

A two-year bond with par value $1,000 making annual coupon payments of $99 is priced at $1,000. What is the yield to maturity of the bond? Yield to maturity %. What will be the realized compound yield to maturity if the one-year interest rate next ye..

  Mutually exclusive projects-payback period for projects

Consider the following two mutually exclusive projects. The payback period for Projects A and B is and years, respectively.

  Results to main aerospace or industry competitor

Compare theses results to a main aerospace or industry competitor.

  Pay for phone and interest rate on your saving account

Suppose that you do have money to pay for the phone and the interest rate on your saving account is 0.2%. Which is a better deal for you? Why?

  Capital budgeting criteria-ethical considerations

A mining company is considering a new project. Because the mine has received a permit, the project would be legal;

  What is the current value of the company stock

If the discount rate is 9 percent, what is the current value of the company’s stock?

  Considering paying off this high interest rate loan

Eric borrowed money last year to buy a new car for his part-time consulting work. The loan is a 3-year loan with 36 monthly payments. Due to his bad credit history, the loan he got is with a 12% annual interest rate compounded monthly. If Eric saved ..

  What is the net present worth of the lease on the date

A warehouse is to be leased for $5000 per month under a 5 year lease. Payments are to be made on the first of the month. What is the net present worth of the lease on the date when the lease begins and the first paymentis due if the nominal interest ..

  Interest rate parity and purchasing power parity

Interest Rate Parity, Purchasing Power Parity, International Fisher deEffect Separated by more than 3,000 nautical miles and five time zones,

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