subject
Business, 01.08.2020 22:01 whityelaine812

Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D 0 = $0.90; P 0 = $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 9.29% 9.68% 10.08% 10.50% 10.92%

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 21:00
Chipotle mexican grill, the american mexican food chain restaurant, opened its first restaurant in the united states in 1993. in 2010, chipotle opened its first restaurant in the united kingdom in london on charing cross. by late may 2013, the company had 6 restaurants in london, but they have not been doing well even though the british have taken a liking to mexican food (boyle, 2013). why has this successful u.s. chain not seen the same success overseas? if you were chipotle's ceo, how would you fix this situation? what is an alternative means of venturing outside of its domestic markets that may allow for a competitive advantage? then, pick a company that has not yet expanded overseas, or if it has expanded, suggest a different strategy for entrance into an overseas market that you feel would be more strategic for the company. research its rivals in the global marketplace and market conditions in the overseas market you are targeting. justify your recommended entry strategy based on these industry and market conditions.
Answers: 1
question
Business, 22.06.2019 01:40
Kis the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?
Answers: 1
question
Business, 22.06.2019 06:30
Select all that apply. select the ways that labor unions can increase wages. collective bargaining reducing the labor supply increasing the demand for labor creating monopolies
Answers: 1
question
Business, 22.06.2019 07:00
Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805
Answers: 1
You know the right answer?
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtai...
Questions
question
Chemistry, 23.07.2019 12:10
Questions on the website: 13722359