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A company has after-tax earnings of $39,400 for the year. Th

Thesis Help Finance A company has after-tax earnings of $39,400 for the year. Th

Finance

A company has after-tax earnings of $39,400 for the year. Th

A company has after-tax earnings of $39,400 for the year. The firm adheres to a residual dividend po… Show more A company has after-tax earnings of $39,400 for the year. The firm adheres to a residual dividend policy with a debt-equity ratio of 0.7. The firm needs $56,300 for new investments. What is the amount of the total dividends that will be paid?______ $6,282.35 $13,906.18 $16,218.00 $21,704.04 A company purchased $25,000 worth of inventory. The terms of sale were 2/5, net 45. What’s the implicit interest if a buyer does not take the cash discount? _____ $250 $300 $500 $800 Based on the information from ABOVE, what’s the effective annual rate (EAR) if the buyer does not take the cash discount?_____ 10.12%. 18.36%. 10.12%. 20.24% Ross Inc. has issued a bond. The bond has a 12% coupon, paid semiannually, a current maturity of 20 years, and sell for $1,171.59. The firm’s marginal tax rate is 40%. What’s the firm’s after-tax component cost of debt? 5.0% 6.0% 7.0% 12% Ross’s preferred stock currently sells for $90 per share and pays a dividend of $10 per share. However, the firm will only receive $80 per share from the sale of new preferred stock due to the floatation costs. What’s the firm’s component cost of Preferred stock? 9.5% 10.0% 12.5% 13.6% Ross’s common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10% per year. What’s the firm’s cost of common stock using DCF approach? 9.5% 10.0% 15.5% 16.5% Ross’s beta is 2.2. The risk-free rate is 5%, and the expected market return is 10%. What’s the firm’s cost of common stock using CAPM approach? 5.0% 10.0% 15.0% 16.0% • Show less

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