What is the cost of common equity for whitewall

Reference no: EM13305231

Cost of preferred stock: Kresler Autos has preferred shares outstanding that pay annual dividends of $9 and the current price of the shares is $81. What is the after-tax cost of new preferred shares for Kresler if the flotation (issuance) costs for a new issue of preferred are 5 percent?

(Omit the percent sign in your answer. Carry out all calculations to four decimal places and round your final answer to two decimal places, for example 7.80%.)

After-tax cost of preferred shares %.

Cost of common stock: Whitewall Tire Co. just paid a $1.35 dividend on its common shares. If Whitewall is expected to increase its annual dividend by 3.90 percent per year into the foreseeable future and the current price of Whitewall's common shares is $13.32, then what is the cost of common equity for Whitewall?

(Omit the percent sign in your answer. Carry out all calculations to four decimal places and round your final answer to two decimal places, for example 7.80%.)

Reference no: EM13305231

Questions Cloud

Compute the wavelength of the light that falls on the slits : Coherent light from a sodium-vapor lamp is passed through a filter that blocks everything except for light of a single wavelength. compute the wavelength of the light that falls on the slits

Calculate the compacted cubic yards per hour over 10-inch : Calculate the compacted cubic yards per hour if a compactor with a 5-ft drum width travels at 3 mph over a 10-in. lift of aggregate base course with 4 passes required to meet density specifications under average operating conditions.

Obtain the self-induced emf in the solenoid : A 0.10 m long solenoid has a radius of 0.05 m and 15000 turns. The current in the solenoid changes at a rate of 6.0 A/s. Determine the self-induced emf in the solenoid

Why its necessary to require conditions-sand cement ratio : Why is it necessary to require such conditions-sand cement ratio, w/c ratio and type of sand. A graded sand is specified for use in the mortar cube test. What would be the likely results if a one-sized sand was used instead of a graded sand.

What is the cost of common equity for whitewall : If Whitewall is expected to increase its annual dividend by 3.90 percent per year into the foreseeable future and the current price of Whitewall's common shares is $13.32, then what is the cost of common equity for Whitewall?

What is the percent difference in net working capital : Suppose marking-to-market reveals that the market value of the firm's inventory is 61 percent below its book value and its receivables are 71 percent below its book value. The market value of its current liabilities is identical to the book value.

What would you push to see happen in the derivative market : Given what you currently konw of derivatives...If you were a regulatory what would you push to see happen in the derivative market?

What minimum force in the pole : A 0.873-kg block is held up against a ceiling by a pole that makes an angle of 21 degree with respect to the vertical; What minimum force in the pole is necessary to get the block moving

Using direct labor as the cost driver : ABC Company's overhead amounts to $300,000 per period based on an output of 200 units of A, 300 units of B, and 500 units of C. Direct labor costs of A, B, and C per unit amount to $75, $50, and $40 respectively. Each unit also requires 7, 12,..

User Account

All Pages