In the past SunnyFlax paid out all of its earnings as dividends. When the stock market opened for trading today, SunnyFlax share price was $38 and earnings for the year ending today ending today are $3/ share. At the end of the day and after paying their $3 dividends, Sunnyflax surprises investors by announcing that they will cut its dividend payout in the future years from 100% to 66.67% and reinvested the retained funds. The rate of return on invested capital is expected to be 12%. If the reinvestment does not affect Sunnyflax' equity cost of capital, what is the expected share price as a consequence of this decision?

Which of the following risk-free, zero-coupon bonds could be bought for the lowest price?
Question 1 options:
A)
one with a face value of $1000, a YTM of 4.8%, and 5 years to maturity
B)
one with a face value of $1000, a YTM of 3.2%, and 8 years to maturity
C)
one with a face value of $1000, a YTM of 6.8%, and 10 years to maturity
D)
one with a face value of $1000, a YTM of 5.9%, and 20 years to maturity

3)The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 14%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to:


A) 8%

B) 2%

C) 4%

D) 6%

Please show step by step solution :)