Expected cash dividends are $4.00, the dividend yield is 6%, flotation costs are 3% of price, and the growth rate is 3%. Compute the approximate cost of new common stock.

An issue of common stock is selling for $57.40. The year-end dividend is expected to be $3.05, assuming a constant growth rate of 10%. What is the required rate of return?

Firm X is considering the replacement of an old machine with one that has a purchase price of $90,000. The current market value of the old machine is $21,000 but the book value is $35,000. The firm's combined tax rate is 29%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.

Assume a corporation has earnings before depreciation and taxes of $130,000, depreciation of $45,000, and that it has a 30% combined tax bracket. What are the after-tax cash flows for the company?