Business

Business, 02.07.2019 02:40, nakeytrag

Rossdale co. stock currently sells for $68.91 per share and has a beta of .88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?

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Business, 22.06.2019 12:30, chycooper101

Rossdale co. stock currently sells for $68.91 per share and has a beta of 0.88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?

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Business, 16.07.2019 20:20, T0othless3clipes

Rollins corporation is estimating its wacc. its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,000. the firm could sell, at par, $100 preferred stock which pays a 12 percent annual dividend, but flotation costs of 5 percent would be incurred. rollins' beta is 1.2, the risk-free rate is 10 percent, and the market risk premium is 5 percent. rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $27.00 per share, and has a growth rate of 8 percent. the firm's policy is to use a risk premium of 4 percentage points when using the bond-yield-plus-risk-premium method to find rs. the firm's marginal tax rate is 40 percent. what is rollins' component cost of debt?

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Business, 09.09.2019 18:30, sylvusia

Rollins corporation is estimating its wacc. its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,000. the firm could sell, at par, $100 preferred stock which pays a 12 percent annual dividend, but flotation costs of 5 percent would be incurred. rollins' beta is 1.2, the risk-free rate is 10 percent, and the market risk premium is 5 percent. rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $27.00 per share, and has a growth rate of 8 percent. the firm's policy is to use a risk premium of 4 percentage points when using the bond-yield-plus-risk-premium method to find rs. the firm's marginal tax rate is 40 percent. what is rollins' cost of preferred stock? select one: a. 10.0% b. 11.0% c. 12.0% d. 12.6% e. 13.2%

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Business, 11.11.2019 21:31, alyssabailey

Stock y has a beta of 1.2 and an expected return of 14.5 percent. stock z has a beta of .7 and an expected return of 9.3 percent. if the risk-free rate is 5.6 percent and the market risk premium is 6.6 percent, the reward-to-risk ratios for stocks y and z are and percent, respectively. since the sml reward-to-risk is percent, stock y is and stock z is . (do not round intermediate calculations. enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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