Question
Problem 11-17 Costs of retained earnings and new common stock [LO3] Compute K e and K n under the following circumstances: a. D 1 =
Problem 11-17 Costs of retained earnings and new common stock [LO3]
| Compute Keand Knunder the following circumstances: |
| a. | D1= $7.80,P0= $108,g= 3%,F= $6.00.(Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Ke | % |
| Kn | % |
| b. | D1= $.42,P0= $37,g= 6%,F= $2.50.(Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Ke | % |
| Kn | % |
| c. | E1(earnings at the end of period one) = $13, payout ratio equals 20 percent,P0= $45,g= 8.9%,F= $4.40.(Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Ke | % |
| Kn | % |
| d. | D0(dividend at the beginning of the first period) = $7, growth rate for dividends and earnings (g) = 5%,P0= $71,F= $7.(Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Ke | % |
| Kn | % |
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
