Dickerson Corporation's common stock is currently selling for 38. Last year's dividend was 4.00 per share.
Investors expect dividends to grow at an annual rate of 7 percent indefinitely.
Flotation costs of 4 will be
incurred when new stock is sold.
a. What is the cost of internal common equity?
b. What is the cost of new common equity?
Question 2
Kinard's Kennels Inc ROE is 20. Their dividend payout ratio is 70. The last dividend, just paid,
was 2.00.
If dividends are expected to grow by the company's internal growth rate indefinitely,
what is the current value of Kinard's common stock if its required return is 18?
A) 14.92 B) 17.67 C) 16.89 D) 11.52
Chinese workers on a railway in the far West. “Without them,” Leland Stanford, president of the Cent
Some common eye disorders. (A) Conjunctivitis (“pinkeye”).
Common Suffixes Cont.
The year 2010 was the hottest since 1880
Research that has examined babies' ability to recognize themselves develops in the 2 year
Common Methods of Contraception