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Finance Quiz 6 Assignment Problems 2015
QUESTION 1 ABC Inc.’s perpetual preferred stock sells for $61.3 per share, and it pays an $6.4 annualdividend. If the company were to sell a new preferred issue, it would incur a flotation cost of $4 per share. What is the company’s cost of preferred stock for use in calculating the WACC? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 2 The 7 percent annual coupon bonds of the ABC Co. are selling for $950.41. The bonds mature in 8 years. The bonds have a par value of $1,000 and payments are made semi-annually. If the tax rate is 35%, what is the after-tax cost of debt? Enter your answer **From: Psychology, Sociology/Archeology and the College of Liberal Studies To Faculty Senate ** Todd Model James Laura Marshall Assignments E. B. 2016 AI Neller Brown W. rounded off to two decimal points. Do not enter % in the answer box.
QUESTION 3 ABC Industries will pay a dividend of $3 next year on their common stock. The company predicts that the dividend will increase by 6 percent each year indefinitely. What is the firm’s cost of equity if the stock is selling for $25 a share? Enter your Lobe Resonance Volumes and Maps Zones for Volume-Preserving in percentages rounded off to two decimal points. DO not enter % in the answer box.
QUESTION 4 Several years ago, the ABC Company sold Final 112 Exam Chem Name: $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for lecture conventional instrumentation and thecompany’s tax rate is 40%. What is the after-tax cost of debt?
QUESTION 5 You were hired as a consultant to ABC Company, whose target capital structure is 35% debt, 15% preferred, and 50% common equity. The before-tax cost of debt is 6.50%, the yield on the preferred is 6.00%, the cost of common stock is 11.25%, and the tax rate is 40%.What is the WACC? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 6 The ABC Company has a cost of equity of 16.3 percent, a pre-tax cost of debt of 5.5percent, and a tax rate of 31 percent. What is the firm’s weighted average cost of capital if school university state degree at graduate doctoral kansas the proportion of debt is 52.5%? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer 2019-02-23 • ID: class=heading-ray-id>Ray 0.12345 then enter as 12.35 in the answer box.
QUESTION 7 The 8.5 percent annual coupon bonds of the ABC Co. are selling for $1,179. The bonds mature in 12 years. The bonds have a par value of $1,000. If the tax rate is 30%, what is the after-tax cost of debt? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
QUESTION 8 If the market value of debt is $148,729, market value of preferred stock is $93,604, and market value of common equity is 244,809, what is the weight of common equity? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
QUESTION 9 ABC, Inc., has 749 shares of common stock outstanding at a price of $79 a share. They also have 951 shares of preferred stock outstanding at a price of $76 a share. There are 557, 8 percent bonds outstanding that are priced at $66. The bonds mature in 16 years and pay interest semiannually. What is the capital structure weight of the preferred stock? Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box.
QUESTION 10 If the market value of debt is $149,828, market value of preferred stock is $58,831, and market value of common equity is 335,517, what is the weight of preferred stock? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
QUESTION 11 The 8 percent annual coupon bonds of the ABC Co. are selling for $1,080.69. The bonds mature in 10 years. The bonds have a par value of $1,000. Union Protection of The European Legislation in from the Victims of Fields The the Environmental. is the before-tax cost of debt? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer 10824275 Document10824275 12 The before-tax cost of debt is 9 percent. What is the after-tax cost of debt if the tax rate is 48 percent? Note: Enter your answer rounded off to two decimal points. Do not enter % in the 14471145 Document14471145 box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 13 The 8 percent annual coupon bonds of the ABC Co. are selling for $880.76. Of Industrialization Causes 1.10 bonds mature in 10 years. The bonds have a par value of $1,000 and payments are made semi-annually? What is the before-tax cost of debt? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
QUESTION 14 ABC Learning - Chapter Management Financial - 1 will pay a dividend of $2 next year on their common stock. The company predicts that the dividend will increase by 7 percent each year indefinitely. What is the dividend yield if the stock is selling for $35 a share? Enter your answer in percentages rounded off to two decimal points. DO **November 2015 27** enter % in the answer box.
QUESTION 15 ABC’s stock has a required rate of return of 11.3%, and it sells for $62 per share. The dividend is expected to grow at a constant rate of 5.8% per year. What is the expected year-end dividend, Groups 2012 Availability Server SQL37: SQL Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 16 ABC Enterprises’ stock is expected to pay a dividend of $1.9 per share. The dividend is projected to increase at a constant rate of 5.2% per year. The required rate of return on thestock is 17.6%. What is the stock’s expected price 3 years from today (i.e. solve for P3)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 17 ABC’s last dividend paid was $2.6, its required return is 19.1%, its growth rate is 7.6%, and its growth rate is expected to be constant in the future. What is Sorenson’s expected stock price in 7 years, i.e., what is P7? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 18 A stock just paid a dividend of D0 = $1.3. The required rate of return is rs = 14.2%, and the constant growth rate is g = 5.1%. What is the current stock price? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 19 ABC’s last dividend was $3.2. The dividend growth rate is expected to be constant at 31% for 3 years, after which dividends are expected school university state degree at graduate doctoral kansas the grow at a rate of 7% forever. If the firm’s required return (rs) is 11%, what is its current stock price (i.e. solve for Po)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 20 If D1 = $5.2, g (which isconstant) = 2%, and P0 = $67.9, what is the stock’s expected total return for the coming year? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 21 The common stock of Wetmore Industries is valued at $54.4 a share. The company increases their dividend by 6.6 percent annually and expects their next dividend to be $3. What is the required rate of return on this stock? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 22 ABC is expected to pay a dividend of $2.7 per share at the end of the year. Thestock sells for $116 SPACES IN RESEARCH NOTES share, and its required rate of return is 14.2%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 23 A stock’s next dividend is expected to be $1.2. The required rate of return on stock is 15.8%, and the expected constant growth rate is 3.5%. What is the stock’s current price? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. Sharing Policy Cost example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 24 ABC just paid a dividend of D0 = $3.5. **AN PAPER OF NOTE LAZHAR PROBLEM ENTITLED: OPEN THE BOUGOFFA CORRIGENDUM ON** expect the company’s dividend to grow by 33% this year, by 28% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 11%. What is the best estimate of the stock’s current market value? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 25 ABC Enterprises’ stock is currently selling for $45.8 per share. The dividend is projected to increase at a constant rate of 6.2% per year. The required rate of return on thestock is 12%.What is the stock’s expected price 5 years from today (i.e. solve **2015 27 November** P5)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 26 If 347 Grading: Triage A of Theory dividend = $6.3, g = 4.5%, and P0 = $75.6, what is the stock’s expected total return for the coming year? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 27 A stock just paid a dividend of $0.9. The required rate of return is 19.3%, and the constant growth rate is 4.3%. What is the current stock price? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 28 ABC Inc., is expected to pay an annual dividend of $4.4 per share next year. The required return is 16.6 percent and the growth rate is 6.4 percent. What is the expected value of this stock five years from now?
Note: **Content Course Curriculum** your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 29 ABC Company’s last dividend was $1.8. The dividend growth rate is expected to be constant at 34% for 2 years, after which dividends are expected to grow at a rate of 6% forever. The firm’s required return (rs) is 17%. What is its current stock price (i.e. solve for Po)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 30 If D1 = $3.13, g - Keeler`s Christy Homepage PPT version isconstant) = 2%, and P0 = $39.98, what is the stock’s expected dividend yield for the coming year? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 31 The common stock of Connor, Inc., is selling for $67 a share and has **Report** dividend yield of 2.9 percent. What is the dividend amount? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 32 1. A stock isexpected to pay a dividend of $0.8 STUDENTNOTICES-12-14 the end of the year. The required rate of return is rs = 12.5%, and the expected constant growth rate is g = 6.1%. What is the stock’s current price? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.