Author Question: Johnson Production Company paid a dividend yesterday of 3.50 per share. The dividend is expected to ... (Read 111 times)

schs14

  • Hero Member
  • *****
  • Posts: 569
Johnson Production Company paid a dividend yesterday of 3.50 per share. The dividend is
  expected to grow at a constant rate of 10 per year. The price of KayCee's common stock today is
  40 per share.
 
  If KayCee decides to issue new common stock, flotation costs will equal 4.00 per
  share. KayCee's marginal tax rate is 35. Based on the above information, the cost of retained
  earnings is
  A) 26.41. B) 19.63. C) 17.55. D) 20.09.

Question 2

Bart's Moving Company bonds have a 11 coupon rate. Interest is paid semiannually. The bonds
  have a par value of 1,000 and will mature 8 years from now.
 
  Compute the value of Bart's Moving
  Company bonds if investors' required rate of return is 9.5.
  A) 1,197.27 B) 1,098.99 C) 1,082.75 D) 1,133.05


Chou

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

For a complete list of videos, visit our video library