Question: According to equity market capitalization what is the cost of
According to equity market capitalization, what is the cost of capital for the stock of the following firm? Current market value of the equity is $1.2 million with 100,000 shares outstanding. The stock price is expected grow 5 percent in a year, and the firm is expected to pay out a $1.50 dividend per share at the end of the first year.
Relevant QuestionsAccording to John Lintner, what is the adjustment factor β? Interpret the calculated adjustment factor.For 2012, Ontario Manufacturing Company provided the following accounting information:a. Which of the above are sources of funds?b. Which of the above are uses of funds?c. What is the overall increase or decrease incash?a. What can you conclude if a firm’s planned sales growth exceeds its break-even sales growth rate?b. What can you conclude if a firm’s planned sales growth is less than its break-even sales growth rate?Explain the difference between the quick ratio and the current ratio.Suppose that ABC Inc. switches to 3/10 net 30 from net 30. It is estimated that 80 percent of customers will take advantage of the discount, while the remaining 20 percent will pay on day 30. The price will increase from $52 ...
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