Please show step by step work.,Chapter 7, problems7-1, 7-3, 7-5, 7-6, 7-16 (a,b),7-1,Thress Industries just paid a dividend of $1.50 a share. The dividend is expected to grow 5% a year for the next 3 years and then10% a year thereafter. What is the expected dividend per share for each of the next 5 years?,7-3, Woidtke Manufacturing’s stock currently sells for $20 a share. The stock just paid a dividend of $1.00 a share, and the dividend is expected to grow forever at a constant rate of 10% a year. What stock price is expected 1 year from now? What is the required rate of return on Woidtke‘s stock?,7-5, A company currently pays a dividend of $2 per share. It is estimated that the company’s dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, the risk-free rate is 7.5%, and the market premium is 4%. What is your estimate of the stock’s current price?,7-6,A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share, and it is expected to grow at some constant rate g throughout time. The stock’s required rate of return is 14%. If markets are efficient, what is your forecast of g?,7-16,The risk-free rate of return, rRF, is 11%; the required rate of return on the market, rM, is 14%; and Schuler Company’s stock has a beta coefficient of 1.5., • If the dividend expected during the coming year, D1, is $2.25, and if g is a constant 5%, then at what price should Schuler’s stock sell?, • Now suppose that the Federal Reserve Board increases the money supply, causing a falling in the risk-free rate to 9% and in rM to 12%? How would this affect the price of the stock?,? Chapter 9, problems 9-2, 9-4, 9-6, 9-8 ,9-2,LL Incorporated’s currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL’s after-tax cost of debt?,9-4,Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend. A similar stock is selling on the market for $70. Burnwood must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock?,9-6,Booher Book Stores has a beta of 0.8. The yield on a yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 5.5%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using CAPM?,9-8,David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company’s outstanding bonds is 9%, and the company’s tax rate is 40%. Ortiz’s CFO has calculated the company’s WACC as 9.96%. What is the company’s cost of equity capital?,

Order Your Custom Essay

Order Your Custom Essay

Regent Papers is a library of common essays on high school, college, undergraduate and postgraduate topics. We have collected top papers from various institution, students and professors. The papers are based on common essay topics in all subjects.

M | T | W | T | F | S | S |
---|---|---|---|---|---|---|

« Oct | ||||||

1 | 2 | 3 | ||||

4 | 5 | 6 | 7 | 8 | 9 | 10 |

11 | 12 | 13 | 14 | 15 | 16 | 17 |

18 | 19 | 20 | 21 | 22 | 23 | 24 |

25 | 26 | 27 | 28 |

© 2015 www.regentessays.com. All Rights Reserved