What the firm''s cost of common stock using dcf approach

Reference no: EM13723385

Ross's common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10% per year. What's the firm's cost of common stock using DCF approach?
9.5%
10.0%
15.5%
16.5%

A company purchased $25,000 worth of inventory. The terms of sale were 2/5, net 45. What's the implicit interest if a buyer does not take the cash discount? _____

$250
$300
$500
$800

Based on the information from Question 45, what's the effective annual rate (EAR) if the buyer does not take the cash discount?_____

15.12%.
18.36%.
10.12%.
20.24%.

A company purchased $25,000 worth of inventory. The terms of sale were 2/5, net 45. What's the implicit interest if a buyer does not take the cash discount? _____

$250
$300
$500
$800

A company has after-tax earnings of $39,400 for the year. The firm adheres to a residual dividend policy with a debt-equity ratio of 0.7. The firm needs $56,300 for new investments. What is the amount of the total dividends that will be paid?______

$6,282.35
$13,906.18
$16,218.00
$21,704.04

Reference no: EM13723385

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