White Lion Homebuilders is considering investing in a one-year project that requires an initial investment of $450,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $595,000. The rate of return that White Lion expects to earn on its project (net of its flotation costs) is 29.63% (rounded to two decimal places). Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $2.45 at the end of the year. The company's earnings and dividends" growth rate are expected to grow at the constant rate of 5.20% into the foreseeable future. If Alpha Moose expects to incur Motation costs of 3.750% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be White Lian Homebuilders Co.'s addition to earnings for this year is expected to be $745,000. Its target capital structure consists of 35% debt, 5% preferred, and 60% equity. Determine White Lion Homebuilders's retained earnings breakpoint: $1,241,667 $1,179,584 $1,365.834 $1,490,000 share price net of its flotation cost. White Lion Homebuilders is considering investing in a one-year project that requires an initial Investment of $450,000. To do so, it will have to issue now common stock and will incur a fictation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $595,000. The rate of return that White Lion expects to earn on its project (net of its flotation costs) is 29,63% (rounded to two decimal places). Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected 29.639 er-share dividend of $2.45 at the end of the year. The company's earnings and dividends growth rate are expected to grow at the constad 20.74% 20% into the foreseeable future. If Alpha Moose expects to incur flotation costs of 3.750% of the value of its newly-raised equity funds, tation-adjusted (net) cost of its new common stock 19.266 (rounded to two decimal places) should be 23.70% White Lion Homebuilders Co.'s addition to earnings for this year is expected to be $745.000 es calget capital structure consists of 35% debt, 5% preferred, and 60% equity. Determine White Lion Homabuilders's retained earnings breakpoint: $1,241,667 $1.179,584 @ $1,365,834 $1,490.000 share price net of its flotation cost. White Lion Homebuilders is considering investing in a one-year project that requires an initial investment of $450,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $595,000, The rate or return that White Lion expects to earn on its project (net of its Motation costs) is 29.53% (rounded to two decimal places). Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $2.45 at the end of the year. The company's earnings and dividends' growth rate are expected to grow at the constant rate of 5.20% into the foreseeable future. If Alpha Moose expects to incur flotation costs of 3.750% of the value of its newly-raised equity funds, then the flotation-adjusted (niet) cost of its new common stock (rounded to two decimal places) should be White Lion Homebuilders Co.'s addition to 10.26% this year is expected to be $745,000. Its target capital structure consists of 35% debt, 544 preferred, and 60% equity. Determine why 12.55% prebuilders's retained earnings breakpoint: $1,241,667 12.8396 $1,179,584 10.919 $1,365,834 $1,490,000
