What would the cost of fresh equity be

Assignment Help Business Management

Reference no: EM13107731

Ballack Co.'s common stock currently sells for $48.50 per share. The growth rate is a constant 10%, as well as the company has an expected dividend yield of 3%. The expected long-run dividend pay-out ratio is 30% and the expected return on equity (ROE) is 12%. New stock can be sold to the public at the current price however a flotation cost of 5% would be incurred. What would the cost of fresh equity be?

Reference no: EM13107731

Questions Cloud

What is the identity of the atom a : What is the identity of the atom A When a solution containing .634 grams of ACl 3 was permitted to combine with an excess of aqueous silver nitrate AgNO 3

Example of chi square table in ms excel : Suppose you were preparing two-way tables of percentages for the following pairs of variables. How would you run the percentages?

Case study - family first farm : Family First Farm is a small family-owned business in Florida that grows a variety of fruits and vegetables. Although Family First Farm is a small business, they employee 15 full-time employees.

Define the is management position : Recognise the key players in this case. Define each player's role and their relationship to each other. Define the IS management position

What would the cost of fresh equity be : The expected long-run dividend pay-out ratio is 30% and the expected return on equity (ROE) is 12%. New stock can be sold to the public at the current price however a flotation cost of 5% would be incurred. What would the cost of fresh equity be?

Question on chi square : Can you please help me develop a research question using gender and another categorical variable associated to adhd that could be address using the chi-square method?

Case study - negotiable instruments : Brittany currently attends college and runs her new business, Pampered Pets, a sole proprietorship she created in her sophomore year. Since Brittany is a student, she does not have much capital and seeks to save money where she can.

Explain what is happening to the unemployment rate : Explain what is happening to the unemployment rate? Use the sticky-wage theory of aggregate supply to describe what will happen to output and the price level in the long-run

Chi-square test problems : A researcher wants to see if there is a relationship between birth order and personality. A sample of n = 100 people is obtained, all of whom grew up in 3-child families.

User Account

All Pages