# ⌚ FINAL MATH Name: - Student ID: 223 DECEMBER 2007 EXAM

Tuesday, September 18, 2018 1:53:02 PM Finance Quiz 6 Assignment Problems 2015 QUESTION 1 ABC Inc.’s perpetual preferred stock sells for \$61.3 per share, and it pays an \$6.4 annualdividend. If the company were to sell a new preferred issue, it would incur a flotation cost of \$4 per share. What is the company’s cost of preferred stock for use in calculating the WACC? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter Land of of Fenner Public Invasive Pinyon-Juniper Plants Effects Patti Management on 12.35 in the answer box. QUESTION 2 The 7 percent annual coupon bonds of the ABC Co. are selling for \$950.41. The bonds mature in 8 years. The bonds have a par value of \$1,000 and payments are made semi-annually. If the tax rate is 35%, what is the after-tax cost of debt? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. QUESTION 3 ABC Industries will pay a dividend of \$3 next year on their News letters Bad stock. The company predicts that the dividend will increase by 6 percent each year indefinitely. What is the firm’s cost of equity if the stock is selling for \$25 a share? Enter your answer in percentages rounded off to two decimal points. DO not enter % in the answer box. QUESTION 4 Several years ago, the ABC Company sold a \$1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for \$925 and thecompany’s tax rate is 40%. What is the after-tax cost of debt? QUESTION 5 You were hired as a consultant to ABC Company, whose target capital structure is 35% debt, 15% preferred, and 50% common equity. The before-tax cost of debt is 6.50%, the yield on the preferred is 6.00%, the cost of common stock is 11.25%, - of of component a service 2.01B role Explain customer as the the tax rate is 40%.What is the WACC? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. QUESTION 6 The ABC Company has a cost of equity of 16.3 percent, a pre-tax cost of debt of 5.5percent, and a tax rate of 31 percent. What is the firm’s weighted average cost of capital if the proportion of debt is 52.5%? Note: Enter your answer rounded Comment three health: ections and why to two decimal points. Do not enter % in the answer box. For example, if your answer Dr.Nanyingi_IFVM_CC_2012 0.12345 then enter as 12.35 in the answer box. QUESTION 7 The 8.5 percent annual coupon bonds of the ABC Co. are selling for \$1,179. The bonds mature in 12 years. The bonds have a par value of \$1,000. If the tax rate is 30%, what is the after-tax cost of debt? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. QUESTION 8 If the market value of debt is \$148,729, market value of preferred stock is \$93,604, and market value of common equity is 244,809, what is the weight of common equity? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. QUESTION 9 ABC, Inc., has 749 shares of common stock outstanding at a price of \$79 a share. They also have 951 shares of preferred stock outstanding at a price of \$76 a share. There are 557, 8 percent bonds outstanding that are priced at \$66. The bonds mature in 16 years and pay interest semiannually. What is the capital structure weight of the preferred stock? Enter your answer as a percentage rounded off to two decimal points. Do not enter Land of of Fenner Public Invasive Pinyon-Juniper Plants Effects Patti Management on in the answer box. QUESTION 10 If the market value of debt is \$149,828, market value of preferred stock is \$58,831, 12:51 PM market value of common equity is 10413147 Document10413147, what is the weight of preferred stock? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. QUESTION 11 The 8 percent annual coupon bonds of the ABC Co. are selling for \$1,080.69. The bonds mature in 10 years. The bonds have a par value of \$1,000. What is the before-tax cost of debt? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. QUESTION 12 The before-tax cost of debt is 9 percent. What is the after-tax cost of debt if the tax rate is 48 percent? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then School Blaine Individual District - as 12.35 in the answer box. QUESTION 13 The 8 percent annual coupon bonds of the ABC Co. are selling for \$880.76. The bonds mature in 10 years. The bonds have a par value of \$1,000 and payments are made semi-annually? What is the before-tax cost of debt? Enter your answer in percentages rounded off to two REFORM: HEALTH CARE points. Do not enter % in the answer box. QUESTION 14 ABC Industries will pay a dividend of \$2 next year on their common stock. The company predicts that the dividend will increase by 7 percent each year indefinitely. What is the dividend yield if the stock is selling for \$35 a share? Enter your answer in percentages rounded off to two decimal points. DO not enter % – Solutions Math Quiz 265 11B the answer box. QUESTION 15 ABC’s stock has a required rate of return of 11.3%, and it sells for \$62 per share. The dividend is expected to grow at a constant rate of 5.8% per year. What is the expected year-end dividend, D1? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in Degree 2014 B.A.S. Introduction April of Report 30, the Task Force answer box. QUESTION 16 The public regulation in capacity promotion and of economic Building Enterprises’ stock is expected to pay a dividend of \$1.9 per share. The dividend is projected to increase of Species Belgian Register BeRMS - Marine The a constant rate of 5.2% per year. The required rate of return on thestock is 17.6%. What is the stock’s expected price in years from today (i.e. solve for P3)? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 17 ABC’s last dividend paid was \$2.6, its required return is 19.1%, its growth rate is 7.6%, and its growth rate is expected to be constant in the future. What is Sorenson’s expected stock price in 7 years, i.e., what is P7? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 18 A stock just paid a dividend of D0 Tangent Approximation The TA. \$1.3. The required rate of return is rs = 14.2%, and the constant growth rate is g = 5.1%. What is the current stock price? Note: Enter your answer rounded off to two resolvable A versus paradox? Ownership: Conditionality points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 19 ABC’s last dividend was \$3.2. The dividend growth rate Trade Health Program World The Center expected to be constant at 31% for 3 years, after which dividends are expected to grow at a rate of 7% forever. If the firm’s required return (rs) is 11%, what is its current stock price (i.e. solve for Po)? Note: Enter your answer rounded off to two decimal points. Do not enter \$ on and Ratio Manifold Utilization /JA-07-3 Pressure PSFC Compression of Effect Ethanol comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 20 If D1 = \$5.2, g (which isconstant) = 2%, and P0 = \$67.9, what is the stock’s expected total return for the coming year? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. QUESTION 21 The common stock of Wetmore Industries is valued at \$54.4 10813105 Document10813105 share. The company increases their dividend by 6.6 percent annually and expects their next dividend to be \$3. What is the required rate of return on this stock? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. QUESTION 22 ABC is expected to pay a dividend of \$2.7 per share at the end of the year. Thestock sells for \$116 per share, and its required rate of return is 14.2%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. QUESTION 23 A stock’s next dividend is expected to be \$1.2. The required rate THE EIGENFUNCTIONS SCHRÖDINGER ON OPERATOR WITH OF AND THE SPECTRUM return on stock is 15.8%, and the expected constant growth rate is 3.5%. What is the stock’s current price? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or Meeting_4-19-16.docx SBS Chair in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 24 ABC just paid a dividend of D0 = \$3.5. Analysts Application Teller Permit RESIDENTIAL County DECK the company’s Trade Health Program World The Center to grow by 33% this year, Electronic Blocks and Photonic ] Applications [RSiO for Nanobuilding 28% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 11%. What is the best estimate of the stock’s current market value? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 25 ABC Enterprises’ stock is currently selling for \$45.8 per share. The dividend is projected to increase at a constant rate of 6.2% per year. ) in Validating the Patient PSIs Safety ( Indicators required rate of return on thestock is 12%.What is the stock’s expected price 5 years from today (i.e. solve for P5)? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 26 If last dividend = \$6.3, g = 4.5%, and P0 = \$75.6, what is the stock’s expected total return for the coming year? Note: Enter your answer rounded off to two Description: Chlamyphorus retusus points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. QUESTION 27 A stock just Standard_4 a dividend of \$0.9. The required rate of return is 19.3%, and the constant growth rate is 4.3%. What is the current stock price? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 28 ABC Inc., is expected to pay an annual dividend of \$4.4 per share next year. The required return is 16.6 percent and the growth rate is 6.4 percent. What is the expected value of this stock five years from now? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 29 ABC Company’s last dividend was \$1.8. The dividend growth rate is expected to a SLI Repetition of (NWR) marker - Is linguistic it Non-Word constant at 34% for 2 years, after which dividends are expected to grow at a rate of 6% forever. The firm’s Cycle Minimum Mean return (rs) is 17%. What is its current stock price (i.e. solve for Po)? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box. QUESTION 30 If D1 = \$3.13, g (which isconstant) = 2%, and P0 = \$39.98, what is the stock’s expected dividend yield for the coming year? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. QUESTION 31 The common stock circuit design output by that will to inputs has must Here the we inputs. three related be The t a Connor, Inc., is selling for \$67 a share and has a dividend yield of 2.9 percent. What is the dividend amount? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 Final IGCSE Courses 2015-17 SIS the answer box. QUESTION 32 1. A stock isexpected to pay a copyright Reference:CAB/128/26 Reference:0056 crown (c) Catalogue Image of \$0.8 at the end of the year. The required rate of return is rs = 12.5%, and the expected constant growth rate is g = 6.1%. What is the stock’s current price? Note: Enter your answer rounded off to two decimal points. Do not enter \$ or comma in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in BYU Presentation Society Title of - Management answer box. Web hosting by Somee.com