Hoak Company's common stock is currently selling for $50. Last Year's dividend was $1.83 per share. Investors expect dividends to grow at an annual rate of 9% into the future__ (A. 9%, B, 13%, C. 4%, D. 3.6%)

Based on the current market values, Shawhan supply's capital structure is 30% debt, 20% preferred stock, and 50% common stock. When using book values, capital structure is 25% debt, 10% preferred stock, and 65% common stock. The required return on each component is: debit-10%, preferred stock--11%, and common stock--18%. The marginal tax rate is 40%. What rate of return must shawhan supply earn on its investments if the values of the firm is to remain unchanged? (a. 10.0%, b. 13.0%, c. 14.3%, d. 18.0%)

reliable metals plans to issue bonds that will mature in 20 years, will have semi-annual coupon rate of 7%, and will have a moody's rating of Aa2. Bonds of other metals companies with similar maturities and ratings curently yield an average of 6.3% (a. Reliable's bonds should be priced to yield close to coupon rate, b. should yield more than 6.3%, c. Will sell at a price to yield about 6.3 because investor's opportunity cost, d. should yield less than 6.3 because they are new)

suppose we calculate a times interest earned ratio of 29 for colgate-palmolive. We can conclude (A. Colgate EBITDA is 29 times larger than its interet expense b. has 29$ of operating cash flow for interest exp. c. may experience some difficulty meeting interest payments, d. is very unlikely to have difficulty meeting its interest payments

when the impact of taxes is considered, as the firm takes on more debt (a. there will be no change in cash flows, b. weighted average cost of capital will increase, c. both taxes and total cash flow to stockholders and bondholders decrease,d. cash flows will increase because taxes decrease

which of the following factors favors the use of more debt in a company's financial structure (a. low levels of taxable income, b. risk of bankuptcy would make customers reluctant buying products, c. high levels of taxable income, d. business is basically risky with unpredictable cash flows

ZZZ corporation has declared a stock dividend that pays one share of stock for every 10 shares owned. What will happen to EPS immediately upon the distribution of the stock dividend? (a. EPS will not be affected by stock,b. EPS will increase by 10%, c. there is not enough information to know, d. EPS will decrease by 10%