FREE Trial

A. What is the expected dividend in two years? Suppose NI = $85,000 B. What is Samsung's WACC? Samsung's capital

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

A. What is the expected dividend in two years? Suppose NI = $85,000

B. What is Samsung's WACC?

Samsung's capital structure is 65% ordinary equity and 35% debt. He has operating assets equal to $1,000,000. Samsung's pre-tax cost of debt = 11%, tax rate is 38%, and marginal cost of equity = 15.54%. Retained earnings are sufficient to provide the ordinary share capital portion of the capital budget. The current stock price is $33.5 and the dividend payout ratio is 45.67%. Samsung dividend has a steady growth rate


Expert Answer:

Answer rating: 100% (QA)

Operating Assets 1 000 000 Value of equity 650 000 Value o View the full answer


answer-question
Related Book For  answer-question
Microeconomics An Intuitive Approach with Calculus

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: February 24, 2023 05:57:22
See More Questions

Related Video

This model assumes that the required rate of return will remain the same for the foreseeable future and also assumes that the growth rate is going to be constant. The same results will be obtained using the sustainable growth rate formula that states g = b x ROI

Students also viewed these finance questions

Q:
What is the expected substitution product (including its stereochemical configuration) in the SN2 reaction of potassium iodide in acetone solvent with the following compound? (D = 2H = deuterium, an...
A:
The reaction is an S N 2 reaction with inversion of co......
Q:
What is the expected profit from this trading strategy?
A:
I get that the hedge fund will make a profit with a......
Q:
What is the expected return? When answering this question, remember that only $50,000 was invested. Also, the units of return are time, e.g., one can express a return as a daily return or a weekly...
A:
I get that the hedge fund will make a profit with a......
Q:
Several industries located along the Ohio River discharge a toxic substance called carbon tetrachloride into the river. The state Environmental Protection Agency monitors the amount of carbon...
A:
n 100 2 01 Ho 10......
Q:
How do firms make investment decisions?
A:
To determine the quantity of investment firms comp......
Q:
The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November...
A:
a THE DELUXESTORE Income Statement For the Year Ended November 30 2019 Sales Sales revenue 700 000 Less Sales returns allowances 8 000 Net sales 692 0......
Q:
Use conditional proof and the eighteen rules of inference to derive the conclusions of the following symbolized arguments. Having done so, attempt to derive the conclusions without using conditional...
A:
Let s use conditional proof to derive the conclusion based on the given pr......
Q:
JoyceClifford gave a check for $5,000 to her nephewCarl to help with living expenses for his last year of college. The face of the check stated, As a loan. Years later, Carl wrote to his aunt asking...
A:
The issues were whether the 5 000 was a gift or a contract that required Carl......
Q:
Examine your decision-making behavior for the following product categories: peanut butter, toothpaste, bottled water, and ice cream. Indicate: (a) how much time and effort do you take in making a...
A:
a Time and Effort in Decision making 1 Peanut Butter Time and effort may vary depending on dietary p......
Q:
Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, the first month of operations, is shown below. End-of-the-month adjustments must account for the following...
A:
Click to View...
Q:
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,990,000, with 75 percent of sales sold on credit. Assets Cash Accounts receivable Inventory Plant and equipment Total...
A:
A Current Assets Cash Accounts receivable Inventory 74 000 287 000 310 000......
Q:
The sales for an organisation within an accounting period were $340 000, opening accounts receivable was $40 000, and closing accounts receivable was $15 000. There were no doubtful debts expenses...
A:
To determine how much cash was actually received from customers with......
Q:
Makers Ltd assembles computer games machines. Standard costs have been prepared as follows: The standard direct labour rate is 5 per hour. During May 20X5, 5,000 Gamesmasters were sold at 60 each and...
A:
To calculate the direct materials and direct labor variances for the month you can use the following......
Q:
Which form of information is more useful for evaluating the financial performance and position of a reporting entity: cash-flow data or information about accounting profits? Explain your answer.
A:
Both cash flow data and information about accounting profits are important for evaluating the financial performance and position of a reporting entity and each provides different insights The usefulne......
Q:
Use the described translation and the graph of the image to find the matrix that represents the preimage. 6 units left and 5 units up W' 3- V' y X' Y' Z' x
A:
To find the image matrix that represents the translation of the po......
Q:
What is the justification for recognising a deferred tax asset because an entity has unused tax losses?
A:
Recognizing a deferred tax asset because an entity has unused tax losses is based on accounting principles and the concept of matching expenses with revenues over time The key justification for recogn......
Q:
On January 1, 2011, Pedico Corporation had 125,000 shares of its $2 par value common stock outstanding. On March 1, Pedico sold an additional 250,000 shares on the open market at $20 per share....
A:
ANS WER There are a total of 5 35 000 shares outstanding for......
Q:
Integration is a vital concept when applied in one?s life. Integrating your life means making ideal choices. Perfect choices on the other go in line with quality decisions. Quality decisions lead to...
A:
1 In balancing the life buckets there are so many challenges faced All the buckets have to be at per......
Q:
A: Suppose that your wage is $20 per hour and you have up to 60 hours per week that you could work. (a) Now, instead of putting leisure hours on the horizontal axis (as we did in Graph 3.1), put...
A:
A a Panel a of Graph 3 1 illustrates this choice set and budget constraint It would begin at the ori......
Q:
In Chapter 22, we briefly discussed the signaling role of educationi.e. the fact that part of the reason many people get more education is not to learn more but rather to signal high productivity to...
A:
A a The worker will choose the higher of the offers If the offers are the same his strategy can be to accept firm 1s offer or firm 2s offer or flip a coin b In equilibrium it must be that the two firm......
Q:
Consider the case of a positive consumption externality. A. Suppose throughout this exercise that demand and supply curves are linear, that demand curves are equal to marginal willingness to pay...
A:
A a This is illustrated in panels a and b of Graph 21 1 where x M is the market output and x is the optimal output The difference between the two increases as the supply curve becomes more elastic Gra......
Fundamentals Of Physics 6th Edition - ISBN: 0471320005 - Free Book