Question
please help me with these finance questions. 1- Polycorp has a debt equity ratio of 0.72.What is the correct debt ratio D/V that should be
please help me with these finance questions.
1- Polycorp has a debt equity ratio of 0.72.What is the correct debt ratio D/V that should be used in the WACC formula?
WACC = ke x E/V + kd x (1-t) x D/V
Provide an answer as a decimal accurate to two decimal places eg 60.156% should be entered as .60
Do not enter the % sign.
2- XYZ Corporation has just paid a dividend of 57 cents per share. The current market price of the share is $16 and shareholders require a return of 9 % pa. What is the annual growth rate (g) of the dividends? Answer as a percentage accurate to two decimal places.Do not enter the % sign.
3- Assume that A limited paid a dividend of 29.9 cents per share just recently. The shares currently sell for $10.4. You also estimate that the dividend will grow steadily at 2.3 % per year into the indefinite future. What is the cost of capital, ke for A limited? Answer as a percentage accurate to two decimal places.Do not enter the % sign.
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