1 The beta of ABC 's common stock is 1 1, the dividend paid is $3 50, and the stock price is $82 00 The expected market return is 12 and the risk free rate is 6 Calculate the cost of equity 2 North Company has a common stock price of $72 The latest reported earnings per share were $4 80 and dividen...

For ABC Given Riskfree rate Rf 6 006 decimal Beta 11 Expected market return R ...

1. The beta of ABC's common stock is 1.1, the dividend paid is $3.50, and the stock...

Fantastic news! We've Found the answer you've been seeking!

Question:

1. The beta of ABC's common stock is 1.1, the dividend paid is $3.50, and the stock price is $82.00. The expected market return is 12% and the risk-free rate is 6%. Calculate the cost of equity ?
2. North Company has a common stock price of $72. The latest reported earnings per share were $4.80 and dividends per share were $1.60. The return on equity (ROE) is 8%. Calculate the cost of equity?

Posted Date: May 15, 2024 10:54 AM

See More Questions

The following table provides an illustration of a sale of Tesla car at $90,000 with a RVG at 50% of the sale price after three years and a salvage value of 50 percent after three years. The upper...
On April 12, 2011, BAM Technologies floated a $100 million bond issue. Each $1,000 bond entitled the bondholder to receive $50 every six months (October 12th and April 12th) until April 12, 2041, at...
Consider the following data from two independent samples. Construct a 90% confidence interval to estimate the difference in population proportions. x 1 = 46 x 2 = 48 n 1 = 90 n 2 = 80
Oxygen gas having a volume of 1000 cm3 at 40.0oC and 1.01 x 105 Pa expands until its volume is 1500 cm3 and its pressure is 1.06 x 10s Pa. Find (a) The number of moles of oxygen present and (b) The...
How does the liquidation of a corporation differ from the liquidation of a proprietorship or partnership?
1. Does this grant present Dr. Ray with an ethical dilemma(s) in any way? 2. Derive at least one hypothesis for each research question listed above. Provide a sound rationale or theoretical...
(Prolog) Create your own function allodd(Lst) that returns true if all elements of the numeric integer list Lst are odd, and false if there are elements that are not odd.
Draw the sectional view and true shape of the 3. A square prism of sides 50mm & height 80mm rests with its base on HP with two vertical faces equally inclined to VP. A section plane perpendicular to...
Explain why you chose tosave $2,000 for a vacationover a time frame oftwo years. (Your response should be 2-3 sentences.)Remember, if you use any information or ideas from the webtext, be sure to add...
A small object, which has a charge q = 5.7 C and mass m = 2.1 x 105 kg, is placed in a constant electric field. Starting from rest, the object accelerates to a speed of 3.3 x 103 m/s in a time of 1.1...
What strategies can be employed to reduce stress and burnout among healthcare professionals during prolonged periods of crisis ?
In exchange for a 40% interest in ABC Partnership, Faith contributes land with a basis of $50,000 and FMV of $125,000. There is a mortgage on the land for $30,000 which ABC Partnership assumes....
The diagram below shows a camera setup where an object is placed at a distance of 6m from a lens whose focal length is 8mm, where the diameter of the lens is 3cm f = 8mm Photosite d=3cm Image Sensor...
Find the arc length of the given curve at the indicated interval of the variable. (y +1)2 = 4x, from x = 0 to x = 1
If the cylinder described in Problem 21.3 were initially heated to 500F, how long would it take for the center of the cylinder to cool to 240F if it were constructed of a. Copper? b. Brass? c. Nickel?
Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $$24,000$ and credit terms of 3/10, n/60. The merchandise had cost Mesa $$16,000$. Santa Fe paid...
Ziegler Inc. has the following cash disbursements in April. Apr. 9 Issued check no. 210 to Kitt Corp. to buy store supplies for $$650.$ Apr. 17 Issued check no. 211 for $$1,400$ to pay off a note...
Scudamore had to attend to payroll, employee benefits, and taxes, among other issues, in getting hiscompany where it is today. Required Prepare a one-page memorandum that summarizes the types of...

1. The beta of ABC's common stock is 1.1, the dividend paid is $3.50, and the stock...

Question:

Expert Answer:

For ABC Given Riskfree rate Rf 6 006 decimal Beta 11 Expected market return R... View the full answer

Students also viewed these finance questions