What is victoria cost of equity

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Questions: Victoria company's current EPS (Earnings per share) is $6.50. It was $3.42 five years ago. The company pays out 40 % of its earnings as dividends and its stock sells for $36.

  1. Calculate the annual growth rate of EPS over the past 5 years.
  2. Calculate next year's dividend per share, D1. (Hint: D0= 40 % of current EPS)
  3. What is Victoria's cost of equity?
  4. Victoria has a 6 % coupon rate, semi-annual payment, and a $1000 par value that matures in 30 years and sells at a price of $615.16. Victoria's total tax rate is 25 %. What is Victoria's cost of debt?
  5. If Victoria uses a capital structure of 60 % equity and 40 % debt, what is the Victoria's cost of capital?

 

Reference no: EM133331616

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