Answer Happy

1.Bath and After stock price at the end of last year was $23.50 and its net income was $117 million with the number of outstanding shares of 90 million shares. Dividend payment last year was $75 million. What was its PIE ratio? O 17.17 O 18.08 18.98 O 19.93 2.The number of shares outstanding of Komeho company are 100,000 shares. The stock pays a semi-annual dividend of $2.5 and is currently selling at $45. What is the cost of preferred stock for Komeho Company? * 5.56% 07.14% 11.11% 6.77%
3. A firm just paid $2.00 dividend on its common stock and expects to continue paying dividends, which are expected to grow 5% each year, from now to infinity. If the required rate of return for this stock is 9%, then the value of the stock is_?* $50.00 $40.00 $54.50 $52.50 4.Which investor incurs the greatest risk? Mortgage bondholder Preferred stockholder Common stockholder Debenture bondholder
5. Which of the following must be adjusted for the firm's tax rate when estimating the weighted average cost of capital WACC?* O Cost of common equity O Cost of preferred stock O Cost of debt O All of the above