Question: final answer 1- 2- After successfully completing your corporate finance class, you feel the next challenge ahead' is to serve on the board of directors

final answer

After successfully completing your corporate finance class, you feel the next challenge ahead' is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only individual voting for you. a. If the company has 570,000 shares outstanding and the stock currently sells for $31, how much will it cost you to buy a seat if the company uses straight voting? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Assume that the company uses cumulative voting and there are three seats in the current election; how much will it cost you to buy a seat now? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. $ 32 Total cost for straight voting b. Total cost for cumulative voting You've collected the following information from your favorite financial website. 52-Week Price Hi 77.40 55.81 130.93 50.24 35.80 LO 10.43 33.42 69.50 13.95 20.82 Div Yld PE Close Net Stock (Div) % Ratio Price Chg Palm Coal .36 2.6 6 13.90 -24 Lake Lead Grp 1.54 3.8 10 40.43 -.01 SIR 2.00 2.2 10 88.97 3.07 DR Dime.80 5.2 6 15.43-26 Candy Galore 0.40 1.5 28 ?? 18 a. Using the dividend yield, calculate the closing price for Candy Galore on this day. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Assume the actual closing price for Candy Galore was $26.36. Your research projects a 4.75 percent dividend growth rate for Candy Galore. What is the required return for the stock using the dividend discount model and the actual stock price? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. $ 26.67 Stock price Required return b. 6.27 %

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