A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per yer and costs $32 per share. The common stock costs $29 per share. What is the dividend per share for the common stock?

A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per yer and costs $32 per share. The common stock costs $29 per share. What is the dividend per share for the common stock?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

A company paid P0.48 in cash dividends per share. Its earnings per share is P3.20 and its market price per share is P20.00. Its dividend yield equals to what? A company has 50,000 shares of common stock outstanding. The stockholders' equity applicable to common shares is P1,470,000, and the par value per common share is P5. What will be the book value per share?
12:09 ( Notes A firm earns $60 billion in profits and pays $45 billion in dividends for the year. The firm has 3 billion shares of preferred stock and 9 billion shares of common stock. The preferred stock is guaranteed a dividend of $5.00 per year. What is the dividends per share for the common stockholders?
A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can be sold for $19.25 per share with a $1.00 flotation, what is the cost of common equity? 15.81% 014.42% 025.75% 013.28% Onone of these
20. Krell Industries has a share price of $22.58 today. If Krell is expected to pay a dividend of $0.87 this year and its stock price is expected to grow to $24.26 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is ____%.(Round to one decimal place.) The capital gain rate is ____%.(Round to one decimal place.) The total return is ____%.(Round to one decimal place.)
4. A firm has 8,000,000 ordinary shares outstanding. The current market price is `25 and the book value is `18 per share. The firm’s earnings per share is `3.60 and dividend per share is `1.44. How much is the growth rate assuming that the past performance will continue? Calculate the cost of equity capital.
A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can be sold for $19.25 per share with a $1.00 flotation, what is the cost of common equity? O 15.81% O 14.42% O 25.75% O 13.28%
8. 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%
7:21 ( Notes 3 A firm earns $60 billion in profits and pays $45 billion in dividends for the year. The firm has 3 billion shares of preferred stock and 9 billion shares of common stock. The preferred stock is guaranteed a dividend of $5.00 per year. How much will they pay in dividends to the preferred stockholders? Do not include the dollar sign or the units of billions.
Q4 NoGrowth Corporation currently pays a dividend of $0.59per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 16.9%?
A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per year and costs $32 per share. The common stock costs $29 per share. What is the dividend yield for the preferred stock? . Round to 1 decimal place.
A firm earns $3550 million in profits and pays $2480 million in dividends for the year. The firm has 175 million shares of preferred stock and 525 million shares of common stock. The preferred stock is guaranteed a dividend of $4.50 per year and costs $52 per share. The common stock costs $39 per share. What is the dividend yield for the common stock? Enter your response as a percent and do not include the percent sign. Round to 1 decimal place.
6. Nielson Motors has a share price of $25 today. If Nielson Motors is expected to pay a dividend of $0.75 this year, and its stock price is expected to grow to $26.75 at the end of the year, then Nielson's dividend yield and equity cost of capital are: A) 3.0% and 7.0% respectively. B) 3.0% and 10.0% respectively. C) 4.0% and 6.0% respectively. D) 4.0% and 10.0% respectively.

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