Question
*please provide answers in excel format Victoria companys current EPS (Earnings per share) is $8.80. It was $4.42 five years ago. The company pays out
*please provide answers in excel format
Victoria companys current EPS (Earnings per share) is $8.80. It was $4.42 five years ago. The company pays out 40 % of its earnings as dividends and its stock sells for $36.
a. Calculate the annual growth rate of EPS over the past 5 years.
b. Calculate next years dividend per share, D1. (Hint: D0= 40 % of current EPS)
c. What is Victorias cost of equity?
d. Victoria has a 6 % coupon rate, semi-annual payment, and a $1000 par value that matures in 30 years and sells at a price of $715.16. Victorias total tax rate is 25 %. What is Victorias cost of debt?
e. If Victoria uses a capital structure of 60 % equity and 40 % debt, what is the Victorias cost of capital
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