Question
1.) Krell Industries has a share price of $21.54 today. If Krell is expected to pay a dividend of $1.15 this year and its stock
1.) Krell Industries has a share price of $21.54 today. If Krell is expected to pay a dividend of $1.15 this year and its stock price is expected to grow to $24.94 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is 5.34%. The capital gain rate is __________%. (Round to one decimal place.)
2.) NoGrowth Corporation currently pays a dividend of $0.44 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 12.4%? The stock price is ______
3.) Zoom Enterprises expects that one year from now it will pay a total dividend of $5.0 million and repurchase $5.0 million worth of shares. It plans to spend $10.0 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.0% and it has 5.0 million shares outstanding, what is its share price today?
4.) A $42,000 new car loan is taken out with the terms 6% APR for 48 months. How much are monthly payments on this loan?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started