Question
c. A company has paid a dividend of $12 this year, the share holders expect the company to grow at 4.5% per year in the
c. A company has paid a dividend of $12 this year, the share holders expect the company to grow at 4.5% per year in the foreseeable future. If the expected rate of return is 5% then what should be the share price per share?
d. A company has paid a dividend of $100 this year, the share holders expect the company to grow at 2.5% per year in the foreseeable future. If the expected rate of return is 4.5% then what should be the share price per share? e. ZNA Inc. has $2,850,000 to run their business, it has this financing made available from multiple sources to run their business. Equity Shares Financing - $800,000 - 10% Debenture Financing - $600,000 - 7.8% Term Loan - $1,000,000 - 7.5% Preference Shares Financing - $300,000 - 8.5% Retained Earnings of Company - $150,000 What is their weighted average cost of capital?
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