a firm's preffered stock pays an annual dividend of $6, and the stock sells for $84. Flotation cost for new issuances of preferred stock are 6% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 32%?
Knowledge is defined as
SOSU, Inc has before tax income this year is $900,000. The company’s payout ratio is 40%. The company's common equity currently has a book value of $5,000,000. They just paid a dividend of $1.87, and the required rate of return on this stock is 10%. Compute the value of this stock if dividends are expected to continue growing indefinitely at the company's internal growth rate. Tax rate = 28%.
Explain how a tax on one product, such as gasoline, can cause the price of other products to decline.
1. We expect that NA Inc. will pay a dividend of $1.50 per share one year from today, a dividend of $2 per share in years two, and of $3 per share in years three. Assume that the value of the stock at the end of year three to be $18.9. If your required return on NA Inc. stock is 12%, what is the most you would be willing to pay for the stock today if you plan to sell the stock in three years?
Learners must critically analyze some principal theories, concepts and principles of supply chain management and the contribution they can make towards FG’s objectives. You must go on to discuss why it remains important for large retail hyper markets such as FG to have an effective supply chain, considering the fact that supply chain objectives must be linked to the organization’s business strategies. With FB’s current siloed approach to its supply chain, discuss the features and boundaries of an integrated supply chain and the benefits it can bring in resolving some of FG’s challenges.
Ethical Teachings between Hinduism and Buddhism including Zen (Japanese) and (Chan) Chinese in the Study of Ethics Foundation term paper
The following information is given with respect to the ratio's of two companies Aman Ltd Roger Ltd Current ratio 2:01 1.60:1 Quick Ratio 1.35:1 1:01 Return on investment 15% 13% Debt Equity Ratio 2.5:1 1:01
a. Define the concepts of Current and Quick ratio’s and also, reflect on your understanding towards the financial performance of the companies by looking to the above information (2marks for defining and 3 marks for interpretation and reasoning) (5 Marks)
b. Define the terms- Return on Investment and Debt equity ratio and also, reflect on your understanding towards the financial performance of the companies (2marks for defining and 3 marks for interpretation and reasoning)
1. Discuss and analyze the following transactions for X Ltd, using the concept of accounting equation (Assets, Liabilities and Equities). 1. Purchased Furniture for Rs675000. 2. Capital Introduced by the business Owner by depositing 12 Lakhs in the bank account. 3. Goods purchased on credit from Aman Enterprises for Rs105000 . 4. Goods sold on credit for Rs 400000. The cost of the goods sold was Rs 300000. 5. Purchased goods from Sneha Enterprises for Rs 600000 and made the payment from the business's bank account