What is the companys cost of equity

Assignment Help Financial Management

Reference no: EM131045174

The Absolute Zero Co. just issued a dividend of $3.15 per share on its common stock. The company is expected to maintain a constant 6.5 percent growth rate in its dividends indefinitely. If the stock sells for $63 a share, what is the company’s cost of equity?

Reference no: EM131045174

Questions Cloud

What is the value of a share of common stock : Diana Ltd. paid a $2.50 per share dividend yesterday. The dividend is expected to grow at 10 percent per year for the foreseeable future. Diana Ltd. has a beta of 1.6, a standard deviation of returns of 30 percent, and a required return of 18%. What ..

As the result of fraudulent corporate practices : Dirks was an officer of a New York broker-dealer firm that specialized in providing investment analysis of insurance company securities to institutional investors. On March 6, Dirks received information from Ronald Secrist, a former officer of Equ..

Derive the constrained mles for the µk and s : Derive the constrained MLEs for the µk and Σ. Show that the Bayes classification rule is equivalent to classifying in the reduced subspace computed by LDA (Hastie and Tibshirani 1996).

Difference between the two groups : A researcher is interested in whether or not hours studied is different for boys and girls. Is there a significant difference between the two groups?

What is the companys cost of equity : The Absolute Zero Co. just issued a dividend of $3.15 per share on its common stock. The company is expected to maintain a constant 6.5 percent growth rate in its dividends indefinitely. If the stock sells for $63 a share, what is the company’s cost ..

Compute the firms net operating income and net income : The Allen Corporation had sales in 2013 of $70 million, total assets of $43 million, and totla liabilities of $21 million. The interest rate on the company's debt is 5.6 precent, and its tax rate is 35 percent. The operating profit margin is 11 perce..

Calculate the sample standard deviation : A sample of N=16 scores has a M=45 and SS=960. Calculate the sample standard deviation (s) and the estimated standard error (sm) for the sample mean

Shares of common stock outstanding : Venable Corporation has 750,000 shares of common stock outstanding, which are owned by 640 shareholders. The assets of Venable Corporation are valued at more than $10 million.

Largest carpet maker has just completed feasibility study : The world's largest carpet maker has just completed a feasibility study of what to do with the 16,000 tons of overruns, rejects, and remnants it produces every year. Company engineers have determined that the waste-burning plant will be environmental..

User Account

All Pages