Question: Please help me understand question 13 through 16 ILLUSTRATION Given the information on the left, answer the following questions EPS 1 What is the average

Please help me understand question 13 through 16

Please help me understand question 13 through 16 ILLUSTRATION Given the information

ILLUSTRATION Given the information on the left, answer the following questions EPS 1 What is the average earnings growth rate for this company? 2014 2015 2016 2017 2018 S S $ $ $ 3.00 3.06 3.12 3.18 3.25 2 What are the expected common stock dividend for 2019? Common Stock 3 What is the pre-tax Cost of capital for Common Stock? - 4 What is the after-tax Cost of Capital for Common Stock? $ 21.60 Dividend Payout is 30% of earnings Current Stock Price Amount of Capital Provided Common Stock Retained Earnings 5 When does the Preferred Stock mature? $ $ 100,000 5,000,000 6 What is the pre-tax Cost of Capital for Preferred Stock? 7 What is the after-tax Cost of Capital for Preferred Stock? Preferred $ 8 How many years until the Bond Matures? Issue Date Par Value Dividend Current Stock Price Amount of Capital Provided 1/1/1997 100.00 $3.75 $75.00 Stock 9 How much interest does the bond pay annually in $s? $ 1,000,000 10 What is the pre-tax cost of capital for Bonds? $ 11 What is the after-tax Cost of Capital for Bonds Par Value Coupon Rate Maturity Date Current Bond Price Tax Rate Amount of Capital Provided 1,000.00 7.00% May 2043 785.00 35% 12 How much total capital does the company have? Bonds $ $ 2,000,000 13 What percentage of Capital is from: a Common Stock b Preferred Stock c c Bonds 0 14 What is the company's Weighted Cost of Capital? 1 2 3 A (75,000) 20,000 15,000 18,000 20,000 20,000 B (150,000) 50,000 40,000 30,000 25,000 15,000 (100,000) 15,000 20,000 25,000 28,000 30,000 Project invest in? 4 15 Depending on your answer to question 14, If the company had unlimited money to invest, what should a Project A (Yes or No) b Project B (Yes or No) c Project C (Yes or No) 5 IRR 7.5% 2.7% 5.2% 16 Depending on your answer to question 14, If you had $175,000 to invest, which project(s) should it invest in

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