What is the cost of retained earnings

Assignment Help Financial Management
Reference no: EM131596296

A firm's stock is selling for $87. The next annual dividend is expected to be $3.00. The growth rate is 7%. The flotation cost is $6. What is the cost of retained earnings? (Round your answer to 2 decimal places.)

Reference no: EM131596296

Questions Cloud

What do you notice about the media story that is misleading : What do you notice about the media story that is misleading? Why can one not say that correlation proves causation?
How san diego has begun to address your chosen strategy : Five local strategies to reduce emissions are outlined. In this essay you will choose one of those local strategies and do three things.
Balance sheet for first national bank : The balance sheet for First National Bank is shown below:
How is linear regression related to correlation : How is linear regression related to correlation? Describe each element of the linear regression equation and the information that it contributes.
What is the cost of retained earnings : The flotation cost is $6. What is the cost of retained earnings?
Taste a bottle of meritage and report on these criteria : Taste a bottle of Meritage and report on these criteria when sharing your findings with the class. Remember to use Zraly's 60 Second Wine Expert methodology.
Compare and contrast the pictures of god found : How does the notion of God in Christianity differ from the notion of God in Islam?compare and contrast the pictures of God found ?
Estimated duration of the project and float of each activity : Construct an activity on node diagram to identify the critical path, estimated duration of the project and the float of each activity
The principle of diversification : The principle of diversification does not refer to which of the following statement.

Reviews

Write a Review

Financial Management Questions & Answers

  What will be new portfolio beta

What will be the new portfolio beta if you keep 80 percent of your money in the old portfolio and 20 percent in a stock with a beta of 0.76?

  Find the value of the annuity

An eighteen year old receives an annuity on her birthday from her great uncle's estate paying 3,000 on her nineteenth birthday and subsequent payments that increase by $500 per year until age thirty-five. Find the value of the annuity on her eighteen..

  The advantages and disadvantages of JIT systems

What is just-in-time (JIT) inventory system? What are the advantages and disadvantages of JIT systems?

  Industrial-sized electrical devices-generators-alternators

The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator requires 2 hours of wiring and 1 hour of testi..

  Monthly mortgage payment at the end of second month

You are borrowing $200,000 on a 30 year, 12% apr, monthly payment, mortgage loan. How much will be your principal repayment from your monthly mortgage payment at the end of the second month?

  Assume annual coupons for all three bonds

A three-year bond with 2.5% annual coupons yields 3%. A one-year zero coupon bond yields 2.80% and a three-year zero coupon bond yields 2.95%. Using the concept of bootstrapping, what is the two-year spot rate? Assume annual coupons for all three bon..

  What are the arithmetic and geometric returns for stock

A stock has had returns of −19.6 percent, 29.6 percent, 31.2 percent, −10.7 percent, 35.4 percent, and 27.6 percent over the last six years. What are the arithmetic and geometric returns for the stock?

  A project will produce an operating cash flow

A project will produce an operating cash flow of $31,200 a year for 7 years. The initial fixed asset investment in the project will be $204,900. The net after tax salvage value is estimated at $62,000 and will be received during the last year of the ..

  Best choice for a market index in the regression

Legion, Inc. is a small high tech firm whose stock trades on the NASDAQ. You want to estimate the stock's beta using a regression based on the empirical market line. That requires regressing the stock's returns against the contemporaneous returns on ..

  What would her percentage return be in load fund return case

Alex later sells her shares in the mutual fund for $12.50 per share. What would her percentage return be in a load fund return case?

  Expected sales-How much would you pay for this stock

The XYZ Corporation has expected sales of $2,000,000 next year and profit margin of 10%. The firm has 500,000 shares outstanding. The current P/E ratio is 22 times and it is expected to continue in the future. How much would you pay for this stock to..

  How is goldman sachs still in business with no assets

Compare Goldman Sachs to JP Morgan and why did Goldman Sachs need to be bailed. How is Goldman Sachs still in business with no assets?How is Goldman Sachs still

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