The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $24.50 per share; its last dividend was $2.00; and it will pay a $2.16 dividend at the end of the current year.
A.
Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
B.
If the firm's beta is 1.3, the risk-free rate is 7%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.
C.
If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.
D.
If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
In: Finance
| eBook Problem Walk-Through
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $25.75 per share; its last dividend was $2.50; and it will pay a $2.60 dividend at the end of the current year.
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In: Finance
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 3% per year. Callahan's common stock currently sells for $27.25 per share; its last dividend was $2.00; and it will pay a $2.06 dividend at the end of the current year.
Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
If the firm's beta is 0.6, the risk-free rate is 4%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.
If the firm's bonds earn a return of 10%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.
If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
In: Finance
Given that the average number of fast neutrons emitted following
the thermal-neutron induced fission of 235U is 2.42 per fission
event; use the following data to calculate the mean number of
fission neutrons produced per initial thermal neutron in a large
volume sample of
(a) pure 235U (b) natural uranium 238U, and (c) uranium enriched to
3% in the 235U isotope.
Note: The microscopic absorption cross section for 235U is 694
barns. The cross section for 238U is 2.71 barns. The fission cross
section for 235U is 582 barns. Natural uranium contains 0.7%
235U.
Comment on you results in terms of operation of a thermal reactor
of finite size.
In: Physics
1. (a) List the sample space in the experiment "roll two dice - a red die and a white die." (Hint: Use a table)
(b) Find the probability that the sum of the numbers on the two dice is less than seven.
(c) Find the probability that the sum of the numbers on the two dice is odd.
In: Statistics and Probability
Please find an argument on the internet that has a claim and provides reason(s) or rationale for that claim. This argument could come from a news story, a YouTube video, or even a posting on a social media site.
Describe the source in detail so that others can have access to the argument (provide URL for the source or other source information such that other may access it)
Clearly state the claim of the argument as well as the reason(s) cited by the source in support of the claim
Apply the four tests for evaluating arguments from the textbook (Facione & Gittens, 2016):
Truthfulness of the premises
Logical strength
Relevance
Non-circularity
Please define each test prior to applying it. Please also underline and bold the name of each test when defining each test for example. "The first test applied to assess the credibility of the claim was the test of “The truthfulness of premises” which involves...."
Reach a conclusion on the argument - provide your rationale for your conclusion in a minimum of 3 sentences.
In: Psychology
7.46 A poll had a sample of 66 people choose their favorite Skittles flavor by color (green, orange, purple, red or yellow). A separate poll sampled 91 people, again asking them their favorite Skittles flavor, but rather than by color they asked by the actual flavor (lime, orange, grape, strawberry, and lemon, respectively). The table below shows the results from both polls. Does the way people choose their favorite Skittles type, by color or flavor, appear to be related to which type is chosen?
|
Green |
Orange |
Purple (Grape) |
Red (Strawberry) |
Yellow (Lemon) |
|
|
Color |
18 |
9 |
15 |
13 |
11 |
|
Flavor |
13 |
16 |
19 |
34 |
9 |
Table: Skittles popularity
In: Math
Question is about the Enron Scandal in 2001... There is no case study... it is just based off of the case in general Does the company have a specific code of ethics? Were any of the components of the code violated? Discuss. Determines if the ethical violations identified in the case violate components of the company’s own Code of Ethics and describes each violation in detail
In: Accounting
Assume you are a social scientist and wish to study a subject of your choosing (e.g., social, religious, political issues, etc.). State the question you wish to study. Then, form the null and alternative hypotheses. Describe the process you would use to test your hypothesis including the test statistic and the level of significance you would use.
In: Statistics and Probability
Burns Corporation's net income last year was $98,300. Changes in the company's balance sheet accounts for the year appear below:
| Increases (Decreases) |
|||
| Asset and Contra-Asset Accounts: | |||
| Cash and cash equivalents | $ | 25,000 | |
| Accounts receivable | $ | 14,200 | |
| Inventory | $ | (17,100 | ) |
| Prepaid expenses | $ | 4,100 | |
| Long-term investments | $ | 11,000 | |
| Property, plant, and equipment | $ | 72,100 | |
| Accumulated depreciation | $ | 33,800 | |
| Liability and Equity Accounts: | |||
| Accounts payable | $ | (19,600 | ) |
| Accrued liabilities | $ | 17,300 | |
| Income taxes payable | $ | 4,200 | |
| Bonds payable | $ | (62,400 | ) |
| Common stock | $ | 42,000 | |
| Retained earnings | $ | 94,000 | |
The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,300.
Required:
a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)
Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
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b. Prepare the investing activities section of the company's statement of cash flows for the year.
Prepare the investing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
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c. Prepare the financing activities section of the company's
statement of cash flows for the year.
Prepare the financing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
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In: Accounting