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all the info are on the questions below,please help,i need these by 8pm,please Currently, Meyers Manufacturing Enterprises (MME) has a capital structure consisting of 35%

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all the info are on the questions below,please help,i need these by 8pm,please

image text in transcribed Currently, Meyers Manufacturing Enterprises (MME) has a capital structure consisting of 35% debt and 65% equity. MME's debt currently has a 7% yield to maturity. The risk-free rate (r RF) is 5%, and the market risk premium (rM - rRF) is 6%. Using the CAPM, MME estimates that its cost of equity is currently 11.6%. The company has a 40% tax rate. MME's financial staff is considering changing its capital structure to 45% debt and 55% equity. If the company went ahead with the proposed change, the yield to maturity on the company's bonds would rise to 7.5%. The proposed change will have no effect on the company's tax rate. D. What would be the company's new cost of equity if it adopted the proposed change in capital structure? Round your answer to 2 decimal places. Do not round intermediate calculations. -------- % E. What would be the company's new WACC if it adopted the proposed change in capital structure? Round your answer to 2 decimal places. Do not round intermediate calculations. ------- % Rubenstein Bros. Clothing is expecting to pay an annual dividend per share of $1.2 out of annual earnings per share of $3.25. Currently, Rubenstein Bros.' stock is selling for $15.50 per share. Adhering to the company's target capital structure, the firm has $10 million in assets, of which 30% is funded by debt. Assume that the firm's book value of equity equals its market value. In past years, the firm has earned a return on equity (ROE) of 18%, which is expected to continue this year and into the foreseeable future a. What is the stock's required return? Round your answer to two decimal places. Do not round intermediate calculations. ------% b. Suppose instead that the firm has decided to proceed with its original plan of disbursing $1.2 per share to shareholders, but the firm intends to do so in the form of a stock dividend rather than a cash dividend. The firm will allot new shares based on the current stock price of $15.50. In other words, for every $15.50 in dividends due to shareholders, a share of stock will be issued. How large will the stock dividend be relative to the firm's current market capitalization? (Hint: Remember market capitalization = P0 x number of shares outstanding.) Round your answer to two decimal places. Do not round intermediate calculations. ------- % c. If the plan in Part d is implemented, how many new shares of stock will be issued? Round your answer to the nearest whole. Do not round intermediate calculations. -------- If the plan in Part d is implemented, by how much will the company's earnings per share be diluted? Round your answer to the nearest cent. Do not round intermediate calculations. $ ------ per share In 2013 the Keenan Company paid dividends totaling $2,920,000 on net income of $11 million. Note that 2013 was a normal year and for the past 10 years, earnings have grown at a constant rate of 9%. However, in 2014, earnings are expected to jump to $19.8 million and the firm expects to have profitable investment opportunities of $7.7 million. It is predicted that Keenan will not be able to maintain the 2014 level of earnings growth because the high 2014 earnings level is attributable to an exceptionally profitable new product line introduced that year. After 2014, the company will return to a. 1. its previous 9% growth rate. Keenan's target capital structure is 40% debt and 60% equity. Calculate Keenan's total dividends for 2014 assuming that it follows each of the following policies: (Write out your answers completely. For example, 25 million should be entered as 25,000,000.) Its 2014 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. Round your answer to the nearest cent. $ ------- 2. It continues the 2013 dividend payout ratio. Round your answer to the nearest cent. $ --------- 3. It uses a pure residual dividend policy (40% of the $7.7 million investment is financed with debt and 60% with common equity). Round your answer to the nearest cent. $ ------- 4. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy. Round your answer to the nearest cent. Regular-dividend $ ------- Extra dividend $ -------- B. Assume that investors expect Keenan to pay total dividends of $7,000,000 in 2014 and to have the dividend grow at 9% after 2014. The stock's total market value is $200 million. What is the company's cost of equity? Round your answer to two decimal places. -------% C. What is Keenan's long-run average return on equity? [Hint: g = Retention rate x ROE = (1.0 - Payout rate)(ROE).] Round your answer to two decimal places. -------%

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