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Author Question: Phillips Enterprises Inc is expected to pay a dividend of 2.60 next year. Dividends are expected to ... (Read 56 times)

leo leo

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on: Jul 10, 2018
Phillips Enterprises Inc is expected to pay a dividend of 2.60 next year. Dividends are expected to
  grow at a constant rate of 8 per year, and the stock price is currently 20.00.
 
  New stock can be
  sold at this price subject to flotation costs of 15. The company's marginal tax rate is 35. Compute
  the cost of internal equity (retained earnings) and the cost of external equity (new common stock),
  respectively.
  A) 21.00, 23.29 B) 0, 21.00 C) 8.00, 23.29 D) 23.00, 25.48

Question 2

A local restaurant owner is considering expanding into another rural area. The expansion project
  will be financed through a line of credit with City Bank.
 
  The administrative costs of obtaining the
  line of credit are 500, and the interest payments are expected to be 1,000 per month. The new
  restaurant will occupy an existing building that can be rented for 2,500 per month. The
  incremental cash flows for the new restaurant include
  A) 2,500 per month rent.
  B) 500 administrative costs, 1,000 per month interest payments, 2,500 per month rent.
  C) 1,000 per month interest payments, 2,500 per month rent.
  D) 500 administrative costs, 2,500 per month rent.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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gcook

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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leo leo

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

DylanD1323

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Reply 3 on: Yesterday
:D TYSM

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