IBM expects to pay a dividend of $4 next year and expects these dividends to grow at 7% a year. The price of IBM is $90 per share. What is IBM's cost of equity capital? A. 9.65% B. 10.23% C. 12.36% D. 11.44% E. 10.89%
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- Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 8% a year. The price of IBM is $80 per share. What is IBM's cost of equity capital? ..... A. 9.45% B. 9.98% C. 10.5% D. 8.4%IBM just paid a dividend of $4.0 and expects these dividends to grow at 8% a year. The price of IBM is $95 per share. What is IBM's cost of equity capital? O A. 8% O B. 12.55% O C. 11.92% O D. 3.76%
- IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 3.92% a year. The price of IBM is $75 per share. What is IBM's cost of equity capital?BM expects to pay a dividend of $8 next year and expects these dividends to grow at 3.15% a year. The price of IBM is $67 per share. What is IBM's cost of equity capital?Suppose Microsoft Co. will pay a dividend of $1.9 per share one year from now (year 1), and $3.8 per share two years from now (year 2). After then (in other words, after the second year) dividends will grow at 3% per year forever. If the firm's equity cost of capital is 5%, what is their current price per share? $182.76 $5.26 O $174.31 $195.70
- Avril Synchronistics will pay a dividend of $1.10 per share this year. It is expected that this dividend will grow by 4% each year in the future. What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 13%? A. $8.55 B. $12.22 C. $13.44 D. $9.178. Assume IBM just paid a dividend of £4.50 and expects these dividends to grow at 8% a year. The ex-div price of IBM is £100 per share. What is IBM's cost of equity capital? A. 3.86% B. 8% C. 12.22% D. 12.86%Topstone Industries just paid an annual dividend of $2.00 per share this year. This dividend, along with the firm's earnings, is expected to grow at a rate of 5% per annum forever. If the current market price for a share of Topstone is $38.61, what is the implied cost of equity? O A. O B. 10.44% O D. 11.22% O C. 10.71% 10.18% OE. 5.36% 7
- A firm just paid a dividend of $3.15. The company dividends are predicted to rise by 4.50% per year forever, and the required rate of return on a similar business is 9%. What is the fair market share price of this firm? a. $70.00 b. $76.83 c. $73.15 d. $80.59 e. $76.70Investors in IBM common stock expect the firm to pay a dividend next year of $2.05 per share. Investors also expect these dividends to grow at a rate of 6%per year. The price of IBM common stock is currently$77per share. Based on this information, IBM’s current cost of common equity capital is closest to which of the following? A.2.66% B.6.00% C.8.66% D.3.34%A firm is expected to pay a dividend of $3.90 one year from now and $4.25 two years from now and $4.30 three years from now. The firm's stock price is expected to be $110.50 in four years. What is the firm's stock value using a 13.78% required return? ○ $75.56 $201.47 $73.36 ○ $65.93