Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Solve the following parts of these finance questions: Part A ) Bristol's Bistro, Inc., has declared a dividend of $ 1 . 3 5 per
Solve the following parts of these finance questions: Part A Bristol's Bistro, Inc., has declared a dividend of $ per share for shareholders. The last date to purchase the stock is Tuesday, December The firm has shares outstanding and will pay the dividend on December How much cash will be needed to pay the dividend? When will the stock begin selling ex dividend Part B Netflix common stock has a beta, b of The riskfree rate is and the expected market return is After tax cost of debt is Tax rate is The weights of debt and equity is :iDetermine the market risk premium on Netflix common stock.ii Determine Netflix's required return using the Capital Asset Pricing Modeliii. Determine weighted average cost of capital.Part C ABC Limited has an opportunity to invest in a new highspeed motor that costs $ to be paid at present. The ABC Limited will generate cash flows of $ one year from now, $ two years from now, and $ three years from now. The motor will be worthless after three years, and no additional cash flows will occur. The ABC Limited has determined that the appropriate discount rate is percent for this investment. Identify the payback period. Also show working with appropriate time line.Part D A firm has issued percent preferred stock, which sold for AED per share par value. The cost of issuing and selling the stock was AED per share. The firms marginal tax rate is percent. Calculate cost of preferred stocks. Also analyse the cost of the preferred stock if cost of issuing and selling stock increases to AED per share. Which scenario will be better for the shareholder and why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started