What would be the cost of new common stock equity for Tangshan Mining if the firm just paid a dividend of $4.25, the stock price is $55.00, dividends are expected to grow at 8.5 percent indefinitely, and flotation costs are $6.25 per share?
A) 17.22%
B) 16.88%
C) 9.46%
D) 12.57%
A
You might also like to view...
Explain the reasoning behind the popularity of the values-based culture.
What will be an ideal response?
O'Malley Inc purchased an asset costing $90,000. Annual operating cash inflows are expected to be $20,000 each year for six years. No salvage value is expected at the end of the asset's life. Assuming O'Malley's cost of capital is 16 percent, what is the asset's net present value? (ignore income taxes)
A) $(16,306) B) $30,000 C) $(5,600) D) $4,800
When companies sell different products that require very different knowledge or skills, they can have salespeople specialize by product line.
Answer the following statement true (T) or false (F)
________ are tangible resources such as buildings, equipment, and computer systems
Fill in the blank with the appropriate word.