Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1=$1.80). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 12%. What is the stocks current value per share?

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.60; P0 = $40.00; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 5.10%; RPM = 5.25%; and b = 0.70. Based on the CAPM approach, what is the cost of equity from retained earnings?

EDM, Inc. just paid a dividend of $2.35 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year, indefinitely. If investors require a return of 10% on this stock, what is the current price?

Francis Inc.'s stock has a required rate of return of 10%, and it sells for $87.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?

Nesmith Corporations outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 15 years to maturity, and an 11% YTM. What is the bonds price?

Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $22.50; g = 6.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock?

Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $870, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 11.75%. The firm will not be issuing any new stock. What is its WACC?