What is the required return on one of gammas preference

Reference no: EM133611591

Question: Gamma Enterprises has asked you to calculate the return on its preference shares to help in its calculation of its weighted average cost of capital (WACC). Gamma has 120,000 preference shares issued at par. Preference shares were issued at a dividend rate of 6.4% p.a. of $20 face value, and the current market price is $15. What is the required return on one of Gamma's preference shares?

Reference no: EM133611591

Questions Cloud

How to get insure-all to pay for underground plumbing leak : Mr. Ring asked you to prepare a legal office memorandum addressing Ms. Lear's primary issue: how to get Insure-all to pay for the underground plumbing leak.

How is this income reported on his tax return : Malachi has a savings account at his local credit union. He earned $50 on deposits made to this account. How is this income reported on his tax return

What is digital dragons economic order size : Digital Dragon Company wants to estimate its economic order size when it is selling 82,000 units a year of digital products that costs $108 per order

What value is entered in the account field : In the open item selection area of the Post Incoming Payments transaction in SAP, what value is entered in the account field

What is the required return on one of gammas preference : Preference shares were issued at a dividend rate of 6.4% p.a. of $20 face value, and the current market price is $15. What is the required return on one

What would be the net amount of the buy cash flow : The corporate tax rate is 30%. In a lease verse buy evaluation, what would be the net amount of the buy cash flow at the end of the 4th year

Whats the effective interest rate : If Timmy takes out a loan for $750 for 15 months, but only receives $725 into his bank account, what's the effective interest rate, re?

What is the nature of the gain or loss : Angel purchased property as an investment on May 11, 2021, for $63,000. On April 26, 2022, Angel sold the land for $97,000 cash. What is the nature of the gain

Is the cost of ground beef a fixed or variable cost : How should Wendy's perception of the relationship between sales of burger and sales of chili affect Wendy's costing procedure

User Account

All Pages