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FIN - A stock has just paid a dividend and has declared an annual




Question;A stock has just paid a dividend and has declared an annual dividend of $2.00 to be paid one year from today. The dividend is expected to grow at a 5% annual rate. The return on equity for similar stocks is 12%. What is PO?a Bond had 5 years to maturity and has a YTM of 8%. Its par value is $1,000. Its semiannual coupons are $50. What is the bonds current market price?A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments are made semiannual. What is the YTM?What is B and why is it important to investors and issuers of stock? Descrive the behavior of stocks with Bs of greater than one, less the one, and less than zero.A company has 100 million shares outstanding trading for $8 per share. It also has $900 million in outstanding debt. If its equity cost of capital is 15% and its debt cost of capital is 12%, and its effective corporate tax rate is 40% what is its weighted average cost of capital?A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. The company has a cost of capital of 12%. Which should the company do and why? You must use at least two capital budgeting methods.Year a b c0 -300 -100 -3001 100 -50 1002 100 100 1003 100 100 1004 100 100 1005 100 100 1006 100 100 1007 -100 -200 0


Paper#47802 | Written in 18-Jul-2015

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