Homework Helper

Not Rated (0)

$17/per page/

About Homework Helper

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Art & Design,Chemistry,Economics,Essay writing Hide all
Teaching Since: Apr 2017
Last Sign in: 328 Weeks Ago, 1 Day Ago
Questions Answered: 3232
Tutorials Posted: 3232

Education

  • MBA,MCS,M.phil
    Devry University
    Jan-2008 - Jan-2011

  • MBA,MCS,M.Phil
    Devry University
    Feb-2000 - Jan-2004

Experience

  • Regional Manager
    Abercrombie & Fitch.
    Mar-2005 - Nov-2010

  • Regional Manager
    Abercrombie & Fitch.
    Jan-2005 - Jan-2008

Category > Business & Finance Posted 07 Jun 2017 My Price 11.00

True or False: It is free for a company to raise money

True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders.

True

False

Points:

Close Explanation

Explanation:

The current risk-free rate of return is 3.80% and the current market risk premium is 6.10%. Blue Hamster Manufacturing Inc. has a beta of 1.56. Using the Capital Asset Pricing Model (CAPM) approach, Blue HamsterAc€?cs cost of equity is selector 1

13.99%

14.65%

13.32%

17.32%

.

Points:

Close Explanation

Explanation:

Fuzzy Button Clothing Company is closely held and, as a result, cannot generate reliable inputs for the CAPM approach. Fuzzy ButtonAc€?cs bonds yield 10.20%, and the firmAc€?cs analysts estimate that the firmAc€?cs risk premium on its stock relative to its bonds is 3.50%. Using the Bond-Yield-plus-Risk-Premium approach, the firmAc€?cs cost of equity is selector 1

13.01%

17.13%

13.70%

15.07%

.

Points:

Close Explanation

Explanation:

The stock of Cute Camel Woodcraft Company is currently selling for $25.67, and the firm expects its dividend to be $1.38 in one year. Analysts project the firmAc€?cs growth rate to be constant at 7.20%. Using the discounted cash flow (DCF) approach, Cute CamelAc€?cs cost of equity is estimated to be...

16.98%

13.21%

12.58%

11.95%

.

Points:

Close Explanation

Explanation:

It is often difficult to estimate the expected future dividend growth rate for use in estimating the cost of existing equity using the DCF approach. In general, there are three available methods to generate such an estimate:

Ac€?c Carry forward a historical realized growth rate, and apply it to the future.
Ac€?c Locate and apply an expected future growth rate prepared and published by security analysts.
Ac€?c Use the retention growth model.

Suppose Cute Camel Woodcraft Company is currently distributing 70.00% of its earnings in the form of cash dividends. It has also historically generated an average return on equity (ROE) of 12.00%. Cute Camel Woodcraft CompanyAc€?cs estimated growth rate is...

11.70%

3.60%

12.30%

42.00%

Answers

Homework Helper
Not Rated (0)
Status NEW Posted 07 Jun 2017 07:06 AM My Price 11.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)