What is thomas total dollar return on this investment

Assignment Help Financial Management
Reference no: EM131984217

1. You borrow $270,000; the annual loan payments are $21,758.33 for 30 years. What interest rate are you being charged? Round your answer to two decimal places

2. Thomas purchased 5,623 shares of EKK stock for $138,422 one year ago. The stock pays annual dividends of $3.12 a share. Today, each share is worth $33.82. What is Thomas’ total dollar return on this investment?

3. ABC Inc. just paid its first annual dividend of $2.4 a share. The firm plans to increase the dividend by 4.6% per year indefinitely. What is the firm’s cost of equity if the current stock price is $36.5 a share?

Reference no: EM131984217

Questions Cloud

Calculate the present value of these payments : Calculate the present value of these payments if EAR = 6%.
State a condition on the conditional probabilities : State a condition on the conditional probabilities Pr[X = m|Z = zr] under which the value of ? is identified. Explain
Analysis of the socio-cultural implications for managers : HI5013-Managing across border - Conduct an analysis of the socio-cultural implications for managers in the course of doing business between Australia and China
Compare the scientific capabilities of the united states : Compare the scientific capabilities of the United States and the Soviet Union during the Cold War?
What is thomas total dollar return on this investment : The stock pays annual dividends of $3.12 a share. Today, each share is worth $33.82. What is Thomas’ total dollar return on this investment?
What was important about that : Why did the national party system break down in the 1850s and what was important about that?
What are the key provisions of the thirteenth : What are the key provisions of the Thirteenth, Fourteenth, and Fifteenth Amendments and to what extent did these amendments bring
What are the key provisions of the thirteenth : What are the key provisions of the Thirteenth, Fourteenth, and Fifteenth Amendments and to what extent did these amendments bring
Successes and failures of the reconstruction era : What are the successes and failures of the Reconstruction Era?

Reviews

Write a Review

Financial Management Questions & Answers

  Using dividend discount model with unchanged risk-free rate

Using dividend discount model, with unchanged risk-free rate, dividend payment and expected dividend growth,

  Makes his first regular annual payment

He makes his first regular annual payment in 1 year, then what is X, Jens’s regular annual payment?

  Another option for financing is to call in outstanding bonds

Another option for financing is to call in the outstanding bonds you have issued and obtain a loan with more favorable terms than the bonds you would issue.

  End of the five years to invest into her business

how much will she have at the end of the five years to invest into her business?

  What is the crossover rate for these two projects

Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 –$ 20,500 –$ 20,500 1 8,975 10,350 2 9,350 7,925 3 8,925 8,825 Calculate the IRR for each project. What is the crossover rate for these two projects?

  Local governments unable to carry large levels of debt

Why are state and local governments unable to carry large levels of debt?

  Bankruptcy act-common stockholders

What would be the priority of the claims as to the distribution of assets in a liquidation under Chapter 7 of the Bankruptcy Act? 1 is the highest claim, 5 is the lowest. Trustees' costs to administer and operate the firm. Common stockholders.

  Compute the expected value of the return on the investment

Compute the expected value of the return on the investment. Assume the time period involved is short.

  How much will your collection be worth when you retire

How much will your collection be worth when you retire in 2071, assuming they appreciate at a 7.1 percent annual rate?

  Compare the optimal price for each segment

Compare the optimal price for each segment with the current rates charged by your hotel and comment on your findings.

  What is the approximate and the exact real rate of interest

If Treasury bills are currently paying 6.45 percent and the inflation rate is 1.4 percent, what is the approximate and the exact real rate of interest?

  Does the cost of equity appear on the income statement

Does the cost of equity appear on the income statement? Why does equity have a cost when the company is not required to pay dividends to common stockholders?

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