Assume that GBIST Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $1.20; P0 = $1,200.00; and g = 6.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?
Cost of equity=(D1/Current price)+Growth rate
=[(1.2*1.06)/1200]+0.06
which is equal to
=6.106%
Assume that GBIST Inc. hired you as a consultant to help estimate its cost of capital....
Rivoli Inc. hired you as a consultant to help estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from retained earnings? Answer 10.69% 11.25% 11.84% 12.43% 13.05%
Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $1.45; P0 = $26.00; and g = 6.50% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? Group of answer choices 12.68% 11.84% 12.08% 10.63% 9.78%
Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 = $0.80; P0 = $77.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? Group of answer choices 8.66% 7.20% 10.12% 9.11% 10.30% Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's...
Heino Inc., hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: risk-free rate = 5%; market risk premium = 6.0%, and beta = 1.05. Based on the CAPM approach, what is the cost of equity from retained earnings given a flotation cost of 10%? 10.50% / 10.71% / 10.88% / 11.30% / 11.60%
Landmark, Inc. hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: its most recently paid dividend is $1.25; its current market price is $31.50; its ROE = 12% and its dividend payout ratio is 40%. New common stock will have an 8% flotation cost. Based on the DCF approach and the Retention Growth Model, what is the cost of equity from new common stock? Enter your answer rounded...
Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $2.10; P0 = $49.50; and g = 6.00% (constant). What is the cost of equity from retained earnings based on the DCF approach? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data:TRF4.10%; RPM=5.25%; and b = 1.70. Based on the CAPM approach, what is the cost of equity from retained earnings? 15.24% 13.94% 10.03% 13.03% 12.63%
You have been hired by the CFO of Lugones Industries to help estimate its cost of common equity. You have obtained the following data: (1) rd = yield on the firm's bonds = 7.00% and the risk premium over its own debt cost = 4.00%. (2) rRF = 5.00%, RPM = 6.00%, and b = 1.25. (3) D1 = $1.20, P0 = $35.00, and g = 8.00% (constant). You were asked to estimate the cost of common based on the...
ing: 1:00:55 Save Submit Test for Grading Question 17 of 24 Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: Do - $0.80; P - $57.50; and g - 8.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? Do not round your intermediate calculations. a. 10.17% 5. b. 9.50% Soc. 10.07% O d. 11.02% e. 7.98% . 0 Icow Key
Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D: - $0.67; P - $45.00; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach? 9.49 11.10 Oceni 1. Lupiel , SELUUN.10, Flue 50 Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting? a. Common stock. b. Preferred...