What is evanec cost of retained earnings and rs

Assignment Help Financial Management
Reference no: EM131595151

The Evanec Company's next expected dividend, D1, is $3.36; its growth rate is 5%; and its common stock now sells for $35. New stock (external equity) can be sold to net $29.75 per share.

What is Evanec's cost of retained earnings, rs? Round your answer to two decimal places.

rs =  %

What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.

F =  %

What is Evanec's cost of new common stock, re? Round your answer to two decimal places.

re =  %

Reference no: EM131595151

Questions Cloud

Compute the percentage error in the approximation : How many ways are there of choosing, with order, the even integers out of the integers 1 through 12?
Structure the strategic planning : Ascertain the importance of strategic planning for an organization. suggest one (1) strategy you may use to structure the strategic planning session
What is cost of common equity and wacc : Patton Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. What is cost of common equity and WACC.
Identify relatively risky areas that indicate the need : Perform analytical procedures to help you identify relatively risky areas that indicate the need for further attention during the audit, if any.
What is evanec cost of retained earnings and rs : The Evanec Company's next expected dividend, D1, is $3.36; its growth rate is 5%; What is Evanec's cost of retained earnings, rs?
Should this project be accepted or rejected based on irr : Should this project be accepted or rejected based on IRR? Why?
How do you calculate the payback period : How do you calculate the payback period for a 50,000 dollar student loan with an interest rate of 5%?
How many different possible outcomes are there of drawing : Seven members of an audience of 25 people are to be chosen to win a prize. The first name drawn will win half of the planet.
Future earnings-dividends and common stock price : The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 6% per year.

Reviews

Write a Review

Financial Management Questions & Answers

  What was variance of the company returns over this period

What was the variance of the company’s returns over this period? The standard deviation?

  Net present value when evaluating projects

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. The project will produce the same after-tax cash inflows of $698,053 per year

  Labor costs without passing them on in form of higher prices

Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cone. Labor costs will go from $7.91 to $8.51 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb t..

  Compound average annual rate of return

How long would it take the 401K to reach $100,000, if the compound average annual rate of return is 6.5% a year?

  No cash dividends during this period of time

Twenty-five years ago, you purchased 100 shares of XYZ, Inc. for $8 per share. XYZ paid out no cash dividends during this period of time,

  Is present value higher or lower than current stock price

Assuming an investment of 20 years, what is the present value of this stock? Is the present value higher or lower than the current stock price?

  What is the bonds yield to maturity if the bond

What is the bond's yield to maturity if the bond is selling for $980.

  Rate of return for the global pepe investment fund

Consider the following information and then calculate the required rate of return for the Global Pepe Investment Fund (GPIF), which holds 4 stocks. The market’s required rate of return is 13.25%, the risk-free rate is 7.00%, and the Fund’s assets are..

  Use the formula for the present value of an annuity

Ford’s current incentives include 4.9% financing for 60 months (monthly payments for 5 years) or $1000 cash back for a Mustang. Let’s assume a student wants to buy a Mustang convertible that costs $25,000, and she has no down payment other than the c..

  Accounting breakeven quantity

A company is considering a project to manufacture a product with the following pro forma cost and sales information: Accounting Breakeven QUANTITY = 10,500 units; Cash Breakeven QUANTITY = 8,200 units; What is the PRICE of the product under this expe..

  Calculate the horizon value

Calculate the horizon value. What is the intrinsic price per share?

  The average return on your investments

the average return on your investments will be 6% during retirement.

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