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Best regards, I have these 4 exercises of my financial course of which I doubt how to get the result, could you help me solve
Best regards,
I have these 4 exercises of my financial course of which I doubt how to get the result, could you help me solve them? Thanks a lot
MMM Corporation has the following data Outstanding shares of common stock 1000 thousand Target capital structure Debt 70% Equity 30% Projected net income (P(NU)] 5000 thousands The projected investments for next year 6000 thousands Assume the residual distribution model is used with respect to dividends. Find dividend per share?(DPS) The following data pertans to Tany Company: Capital structure (considered optimal) Long term dedit (LID) Preferred stock (PS) Common stock (CS) Tax rate Expected constant growth rate for 10% Earings 5% 50% Dividends Last year dividend paid (Do) per share $3.00 Current selling price of one common share $60.00 The estimated treasury bonds yield The estimated market risk premium (MRP) The estimated company's beta The same conditions apply to new security offering Preferred stock: Share price $100.00 Dividend per share (Dps) 57.65 Flotation cost per stare (5) Long term debt (LTD): Interest rate (18) Assunung that the company will not issue additional common stock share, find the component cost of Common stock (assuming DCF) $4.00 4stocks for existing AA is a pharmaceutical company and plants to adopt a stock splits by giving "stocks The current stock price per share is The company's managers believe the total market value would increase by This is because of the expected improvement in companies' liquidity that will follow the company's plan 5610 Find the stock's expected price immediately after the stock split 175 The finance manager of NN Co. estimated the following Unlevered beta (BUL) Debt to equity ratio (DE) 40.00% Tax rate (t) Risk free rate Market risk premium By how much would the capital structure shift change the Co's cost of equity? 30% 3%Step by Step Solution
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