Question
8. The company has a constant growth rate of 6% and a just paid dividend of $3 and sell at $32 per share. Floatation cost
8. The company has a constant growth rate of 6% and a just paid dividend of $3 and sell at $32 per share. Floatation cost is $2.5. Calculate the Cost of the Common stock
9. The discount rate used in an NPV is normally the WACC - taking into account the __________ risk of the investment.
a. Systematic
b. Non Systematic
c. Systematic and Non Systematic
d.none of the above
10. Company Corporation's bonds mature in 14 years and pay 7% interest annually. If you purchase the bonds for $1110.00, what is your expected rate of return?
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
