What is martha cost of equity

Assignment Help Finance Basics
Reference no: EM13270233

Martha's Pancake House, Inc. just paid its annual dividend of $0.80 a share. The stock has a market price of $13.00 and a beta of 1.04. The return on U.S. Treasury bills is 2.5 percent and the market risk premium is 7.3 percent. What is Martha's cost of equity?

9.89 percent
10.09 percent
10.37 percent
10.65 percent
11.02 percent

 

Reference no: EM13270233

Questions Cloud

What wavelength photon is given off : Consider a fluorescent molecule where the electron that participates in fluorescence has ground state energy of -4.6 eV. what wavelength photon is given off
What is the net advantage to leasing : Green Valley Farms uses straight-line depreciation, has a 32 percent tax rate, borrows money at 8 percent, and has sufficient tax loss carryovers to offset any potential taxable income the firm might have over the next five years. What is the net ..
Write an instruction sequence to configure the sci subsystem : Write an instruction sequence to configure the SCI subsystem for operation with the following parameters: 1500 baud using a 9 MHz Bus Clock, 1 start bit, 9 data bits, 1 stop bit, no loop back, no idle line use, no wakeup, enabled receive and trans..
Explain the preparation of lactate buffer : Describe the preparation of 0.250 L of 50.0 mM lactate buffer, pH 4.5 using a 0.5 M solution of lactic acid and 0.5 M solution of sodium lactate. pka=3.9
What is martha cost of equity : Martha's Pancake House, Inc. just paid its annual dividend of $0.80 a share. The stock has a market price of $13.00 and a beta of 1.04. The return on U.S. Treasury bills is 2.5 percent and the market risk premium is 7.3 percent. What is Martha's c..
Determine the specific heat of the metal : A 350 g piece of metal at 100C is dropped into a 100 g aluminum cup containing 500 g of water at 15C. What is the specific heat of the metal
Advantages and disadvantages of oil exploration : Write an essay with a minimum of 900 words about the advantages and disadvantages of oil exploration.
Design a 4 input and 1 output combinational circuit : Design a 4 input, 1 output combinational circuit. the input represents a 4-bit number, N = X3X2X1X0, which ranges from 0 to 15. The output, PN is 1 when N represents a Prime Number, otherwise PN is 0.
How much nitrogen evaporates : A 52g ice cube at its melting point is dropped into an insulated container of liquid nitrogen. How much nitrogen evaporates if it is at its boiling point of 77 K and has a latent heat of vaporization of 200 kJ/kg

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the expected return and standard deviation

Denard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. What is the expected return and standard deviation of each company?

  Prepare a schedule showing unit and total depletion

Cleanburn Coal Corporation bought coal-leasing land that contains 800,000 tons of coal for $21,700,000. Soil test through geologist cost $35,250 for the purchased land, but test at other sites that yielded negative results cost $116,250.

  What would be the result at the end of five years

What would be the result at the end of five years If she pays her uncle $100 a month?

  The different users of financial statement analysis

Some of the different users of financial statement analysis include short-term lenders, long-term lenders, and investors. Which ratios would each of these users be most interested in and why?

  Find current margin position

Suppose you sold 1,000 shares of stock for $21,400. The sale was a short sale with an initial margin requirement of 60%. The maintenance margin is 30%.

  What is rbw current ratio

RBW corp has cash of 48000 short term note payable of 35000 accounts receivable of 120000, inventories of 200000, and accurals of 90000. what is RBW current ratio?

  Calculate contribution margin per unit

If I sell a component for $20 each. Current capacity is 10,000 units per week. For the last few months, however, my company has been receiving new orders at a rate of 14,000 units per week, and now has a substantial backlog.

  Ipo prospectus

Can you please explain, the use of a prospectus developed before an IPO. Why does a firm do a road show before its IPO?

  Cost-effectiveness of screening for diseases

Evaluate and explain this statement: Screening for diseases is a cost effective use of health resources. Which part(s) of the health services system, in your view, is/are most responsible for health promotion and disease prevention?

  Computation of annual depreciation

Computation of Annual Depreciation and Book Value at the end of life of the equipment and classified as seven-year property under MACRS

  Calculation of cost of common equity for wacc decisions

Calculation of Cost of common Equity for WACC decisions and what is the estimated cost of common equity using the DCF approach

  Compute the future value

Mr. Blochirt is making a college investment fund for his daughter. He will put in $850 per year for the next fifteen years and expects to earn a 8 percent yearly rate of return.

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