A stock is trading for 43, and just paid a dividend of 0.8 which is expected to grow at a fraction 0.04 per year. If Goldman Sacs charges a fraction 0.19 as a flotation cost, what is the required rate of return on a new stock issue?
Consider a company financed with 0.9 equity, 0.0 preferred stock, and the remaining debt subject to a corporate tax rate 0.5 If the required rate of return on the debt is 0.07, on the preferred stock is 0.09 and on the common stock is 0.13, what is the working average cost of capital for this company?
What is the internal rate of return of the following set of cash flows? CO = -300 C01 = 200 C02 = 300 C03 = 50