Question
In: Finance
Year Dividend 2007 $ 0.02 2008 $ &nbs
| Year | Dividend | ||
| 2007 | $ 0.02 | ||
| 2008 | $ 0.03 | ||
| 2009 | $ 0.04 | ||
| 2010 | $ 0.05 | ||
| 2011 | $ 0.06 | ||
| current stock price | $10.00 | ||
| Number of stock shares | 400,000 | ||
| Debt/Equity ratio | 0.75 | ||
| Interest Paid | 240,000 | ||
| tax rate | 36% | ||
| Part A. Estimate the constant annual compounding growth rate based on the dividends 2007 through 2011. | |||
| Growth rate | |||
| Part B. Use the Gordon dividend model to estimate the cost of equity | |||
| Cost of equity | |||
| B. Calculate the WACC | |||
| Cost of debt | |||
| WACC | |||
Solutions
Expert Solution
THE WAY THE YELLOW CELLS ARE GIVEN , I HAVE ASSUMED THAT
IT IS FULLY EXCEL PRESENTATION. SO I HAVE SOLVED FULLY USING EXCEL.
I HAVE GIVEN CELL REFERENCES AS WELL SO THAT IT IS EASY TO
UNDERSTAND. THANK YOU
jeff jeffy answered 1 year agoRelated Solutions
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Dividend $ 7.46 $ 7.91...
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Dividend
$ 7.46
$ 7.91
$ 8.38
$ 8.80
$ 9.24
$ 9.70
$ 10.28
$ 10.79
$ 11.33
$ 12.01
Find both the arithmetic growth rate and the geometric growth
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Donellys, Inc. has prepared the following comparative balance sheets for 2007 and 2008: 2008 2007 Cash...
Donellys, Inc. has prepared the following comparative balance
sheets for 2007 and 2008: 2008 2007 Cash $ 297,000 $ 153,000
Receivables 159,000 107,000 Inventory 150,000 180,000 Prepaid
expenses 18,000 27,000 Plant assets 1,260,000 1,050,000 Accumulated
depreciation (450,000) (375,000) Patent, net (intangible asset)
153,000 174,000 $1,587,000 $1,316,000 Accounts payable $ 153,000 $
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End of Year Stock Price $ Returns % 2007 $ 20.91 ------- 2008 14.06 -32.76% 2009...
End of Year
Stock Price $
Returns %
2007
$ 20.91
-------
2008
14.06
-32.76%
2009
24.81
76.46
2010
35.57
43.37
2011
32.58
-8.41
2012
48.02
47.37
2013
67.43
40.42
2014
51.26
-23.98
2015
36.91
-27.99
2016
47.71
29.26
2017
44.55
-6.62
I received that correct answers, however I do not know how to
solve them. Please write out equations for calculator use. Thank
you.
a.) What is the average return?
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How do you get that? Show Work....
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Year
2004
2005
2006
2007
2008
2009
Stock A
-10%
20%
5%
-5%
2%
9%
Stock B
21%
7%
30%
-3%
-8%
25%
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A company incurs the following costs on a particular project: Year 2006 2007 2008 Total Costs...
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Year
2006
2007
2008
Total
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500
700
300
1,500
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Group of answer choices
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B
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Year A B
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3 20,000 67,967
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During the 2007-2008 school year, approximately p = 0.64 of principals in Florida public schools were...
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2006
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2007
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2008
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2009
59994
2010
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2011
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2012
67989
2013
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2014
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2015
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2016
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2017
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2018
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I. (a) Determine the trend line using both linear and two
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