20. Signal Environment Corp will pay a dividend on common stock of $4.00 per share at the end of the year. The required return on common stock (Ke) is 11.5%. The firm has a constant growth rate of 8%. Compute the current price of the stock (P0). 23. Assume a company has earnings before depreciation and taxes of $100,000 and depreciation of $40,000. Compute its cash flow. The tax rate is 30%. 24. Rorals Corporation has a convertible bond outstanding. The par value is $1,000, the coupon rate is 9%, and the bond matures in 25 years. If similar bonds, which are not convertible, are currently yielding 12%, what is the pure bond value? 25. Sun Energy Company has the following capital section in its balance sheet. Its stock is currently selling for $5 per share. Common stock (100,000 shares at $1 par)................ $100,000 Capital in excess of par............................................. 100,000 Retained earnings...................................................... 200,000 $400,000 The firm intends to declare a 10 percent stock dividend. Show the capital section of the balance sheet after this transaction