Question
b. You are now required to calculate for MS Tech concerning their operations during the FYE 30 June 2019: i. Calculate the growth rate for
b. You are now required to calculate for MS Tech concerning their operations during the FYE 30 June 2019: i. Calculate the growth rate for MS Techs dividends from 2016 to 2019. Briefly explain what the number means. (3 marks) ii. Calculate MS Techs cost of equity in 2019 using the dividend growth model. Briefly explain what the number means. (3 marks) iii. In 2019, MS Tech had non-cumulative preferred stocks issued at RM1.00 with annual dividend of RM0.02. If flotation costs for its preferred stock was 7%, What is MS Techs cost of preferred stock in 2019? Briefly explain what the number means. (3 marks) iv. Calculate the WACC for the firm in 2019, if MS Techs capital structure in 2019 consists of 80.4% common stock, 0.2% preferred stock and 19.4% debt. Briefly explain what this number means. (3 marks)
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