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Victoria company's current EPS (Earnings per share) is $6.50. It was $4.42 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 $4.42 five years ago. The company pays out 40% of its earnings as dividends and its stock sells for $36. 1. Calculate the annual growth rate of EPS over the past 5 years. 2. Calculate next year's dividend per share, D1. (Hint: D0= 40% of current EPS) 3. What is Victoria's cost of equity? 4. 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 $515.16. Victoria'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% debt, what is the Victoria's cost of capital
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