Question: Can I have answer and solution to this question please 1.FLP Company has1000 existing common shares.The market value of the share isUsd90 and the net
Can I have answer and solution to this question please
1.FLP Company has1000 existing common shares.The market value of the share isUsd90 and the net earnings isUsd1,000.What is the cost of Capital assuming that the new shares will be issued at market price?
Select one:
a. 1.11%
b. 0.11%
c. 0.01%
d. 11.11%
2.A corporation is issuing 10% common stock that should be sold forUsd15 each. The business will incur flotation costs ofUsd2 per share.With growth rate of 5% Whatis the cost of capital?
Select one:
a. 13.54%
b. 4.12%
c. 61.54%
d. 16.54%
3.A corporation is issuing 10% common stockthat should be sold forUsd15each. The business will incur flotation costs ofPhp5per share.What is the cost of equity?
Select one:
a. 15%
b. 3%
c. 10%
d. 33.3%
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