At year-end 2525, Stockholder’s Equity is $3,300 and there are 110 common shares outstanding. For 2526,...

At year-end 2525, Stockholder’s Equity is $3,300 and there are 110 common shares outstanding. For 2526, sales should equal $13,200 , the net profit margin (= net income ÷ sales) is 7.20%, the payout ratio (=dividends ÷ net income) is 45%, and no shares are issued or repurchased. If the equity price-to-book ratio at year-end 2525 is 0.65, and it moves to 0.74 at year-end 2526, what is the shareholder’s annual rate of return for 2526?a. 51.8% b. 47.1% c. 42.8% d. 39.0% e. 57.0%

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jeff jeffy answered 2 months ago

The outstanding share capital of Flint Corporation consists of 3,300 shares of preferred and 7,400 common...

The outstanding share capital of Flint Corporation consists of 3,300 shares of preferred and 7,400 common shares for which $281,200 was received. The preferred shares carry a dividend of $7 per share and have a $100 stated value. Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive...

An all-equity company has common and preferred shares. There are 250,000 common shares outstanding with a...

An all-equity company has common and preferred shares. There are 250,000 common shares outstanding with a price of $31.30 per share and with an expectation to continue to provide a dividend of $4.75 per share. There are 50,000 preferred shares outstanding, with a 3.10% dividend, $100 par value per share, and $61.80 market value per share. Given this information, what is the company's WACC? a) 13.53 % b) 12.91% c) 13.22 % d) 12.61 % e)12.30 %

Explain the difference between debt and equity What factors affect the return on common stockholder’s equity?...

Explain the difference between debt and equity What factors affect the return on common stockholder’s equity? Discuss the entity theory rationale for making no distinction between debt and equity Explain the term “treasury stock” and why the companies acquire them

The shares outstanding of RING Inc. are 321 million. At the end of the year, the...

The shares outstanding of RING Inc. are 321 million. At the end of the year, the company expects its earnings to be $641 million. The equity cost of capital of the company is 11%. The firm pays out 50% of its earnings in total: 20% used to repurchase shares and 30% paid out as dividends. If earnings are expected to grow at a constant rate of 7% per year, what is the share price of RING Inc? Select one: $12.48...

HH has $300M in common equity, with 5M shares outstanding. IF its MVA is $200M what...

HH has $300M in common equity, with 5M shares outstanding. IF its MVA is $200M what is the company's stock price?

Stamping began the current year with 450,000 common shares outstanding and issued an additional 90,000 shares...

Stamping began the current year with 450,000 common shares outstanding and issued an additional 90,000 shares on September 1. The firm has $11,500,000, 2.5 % convertible bonds on June 30 (i.e., $287,500 coupon interest annually), which are convertible into 329,000 shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had $1,160,000 par value, 5% nonconvertible, noncumulative preferred stock outstanding for the full year and declared dividends for...

At year-end 2525 the company has Total assets of $6,200 financed by Debt of $3,400 and...

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Aaron Inc. has 335 million shares outstanding. It expectsearnings at the end of the year...

Aaron Inc. has 335 million shares outstanding. It expects earnings at the end of the year to be $650 million. The firm's equity cost of capital is 10%. Aaron pays out 50% of its earnings in total: 30% paid out as dividends and20% used to repurchase shares. If Aaron's earnings are expected to grow at a constant 6% per year, what is Aaron's share price?

Stockholders' Equity Paid-In Capital: Common Stock—$5 Par Value; 1,300 shares authorized, 310 shares issued and outstanding...

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Court Casuals has 300,000 shares of common stock outstanding as of the beginning of the year...

Court Casuals has 300,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year. May 18 Issues 22,000 additional shares of $1 par value common stock for $43 per share. May 31 Purchases 5,000 shares of treasury stock for $44 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury...

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