Modesto Satellite Co. earned $30 million for the fiscal year ending yesterday. The firm also paid...

Modesto Satellite Co. earned $30 million for the fiscal year ending yesterday. The firm also paid out 60 percent of its earnings as dividends yesterday. The firm will continue to pay out 60 percent of its earnings as annual, end-of-year dividends. The remaining 40 percent of earnings is retained by the company for use in projects. The company has 9 million shares of common stock outstanding. The current stock price is $35. The historical return on equity (ROE) of 12 percent is expected to continue in the future. What is the required rate of return on the stock? (Hint: Use the DGM and the sustainable growth rate for g.)

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jeff jeffy answered 2 years ago

Hardaway earned $147,000 of compensation this year. He also paid (or had paid for him) $6,100...

Hardaway earned $147,000 of compensation this year. He also paid (or had paid for him) $6,100 of health insurance (not through an exchange). What is Hardaway's AGI in each of the following situations? (Ignore the effects of Social Security and self-employment taxes.) a. Hardaway is an employee and his employer paid Hardaway’s $6,100 of health insurance for him as a nontaxable fringe benefit. Consequently, Hardaway received $140,900 of taxable compensation and $6,100 of nontaxable compensation. Hardaway’s AGI -------------------------? b. Hardaway...

Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend...

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At the end of the fiscal year ending 31st December 2018, MCS & Co reported common...

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For the fiscal year ending December 2015, ExxonMobil had a book value of $106,020 million in long-term liabilities and a book value of $165,586 million in total stockholder equity. What was ExxonMobil’s book debt-to-equity ratio? Do not round at intermediate steps in your calculation. Express your answer in decimal form to three decimal places.

Amortization of the software costs amounted to HUF 6,745 Million in the fiscal year ending December...

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In October of fiscal year 2005, Lowe’s also issued $500 million of unsecured notes with a...

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Arapiles Ltd paid a dividend of $1 yesterday. The firm is expected to increase this dividend...

Arapiles Ltd paid a dividend of $1 yesterday. The firm is expected to increase this dividend by 12 percent each year for 5 years and from then onward, maintain a steady dividend increase of 4 percent. The firm's cost of equity is 14 percent. What is the value of Arapiles Ltd today? What capital gains yield is predicted if you buy and hold an Arapiles Ltd share for one year starting from today? What capital gains yield would you predict...

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