Top Professionals
The tutoring and assignment help team consists exclusively of highly qualified graduate writers, each professional with in-depth subject matter expertise and significant experience in academic writing.
Order for this Paper or Similar Assignment Writing Help
Click to fill the order details form in a few minute.
Posted: April 13th, 2023
Assignment 5 essay
5
show calculation.
1. Which one of the following is not directly related to the features of common stocks?
a. Common stock represents the ownership b. Ownership implies control.
c. Stockholders elect directors. d. Directors elect management
e. Management’s goal is to minimize the cost.
2. Which one is the cost of preferred stock, calculated from the data below?
Data: A 10%, $1,000 par value, annually dividend, perpetual preferred stock sells for $1,111.
3. You were recently hired by Hubbard Darren Inc. to estimate its cost of common equity. You obtained the following data: D1 = $1.00; P0 = $42.50; g = 5.00% (constant). What is the cost of equity raised by selling new common stock? (hint: use rs = (D1/P0) X100+(g) or P rs = (D1/P0) X100+(P1-P0)/P0 X100)
4. The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company’s beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the required rate of return, rs?
5. The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company’s beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company’s current stock price? (Hint: use rs=10.325%)
6. The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company’s beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the Dividend yield?
7. The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company’s beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the stock’s expected value, P1 one year from now? (Hint: use rs=10.325%)
8. The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company’s beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the capital gain yield?
9. The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to have a negative and constant growth rate, -4% per year in the future. The company’s beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the company’s current stock price? (Hint: use rs=10.325%)
10. The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to have a negative and constant growth rate, -4% per year in the future. The company’s beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the capital gain yield?
-research paper writing service
Why Choose our Custom Writing Services
We prioritize delivering top quality work sought by college students.
Discounted Pricing
Our custom writing services maintain the highest quality while remaining affordable for students. Our pricing for research papers, theses, and dissertations is not only fair considering the superior quality but also competitive with other writing services.
0% Similarity Index
We guarantee plagiarism-free, human-written content. Every product is assured to be original and not AI-generated. Our writers, tutors and editors are research experts who ensures the right formating and citation sytles are followed. To note, all the final drafts undergo rigorous plagiarism checks before delivery for submission to ensure authenticity for our valued customers.
How it works
When you decide to place an order with Dissertation Help, here is what happens:
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.