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Victoria company's current EPS (Earnings per share) is $6,50. It was $3.42 five years ago. The company pays out 40% of its earnings as dividends
Victoria company's current EPS (Earnings per share) is $6,50. It was $3.42 five years ago. The company pays out 40% of its earnings as dividends and s stock sells for 536 1. Calculate the annual growth rate of EPS over the past 5 years. 2. Calculate next year's dividend per share, D1. (Hint: DD =40% of eurrent EPS) 3. What is Victoria's cost of equity? 4. Victoria has a 6% coupon tate, semi-annual payment, and a $1000 par value that matures in 30 years and sells at a price of $615.16. Vicloria's total tax rate is 25% What is Victoria's cost of debt? 5. If Victoria uses a capital structure of 60% equity and 40% debl, what is the Victoria's cost of capital? Quention 28 of 29
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