Problem 14.05 – Calculating Cost of Preferred Stock
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Find the cost of preferred stock.
Calculator Preview
Your numbers will vary.
Find the cost of preferred stock.
Your numbers will vary.
Given various debt-to-capital ratios… calculate the ROIC and ROE for firm LL and firm HL
Your numbers will vary.
If the company declares a stock split, determine the new number of shares outstanding and the new par value per share.
Your numbers will vary.
Given the amount of funds raised by selling stocks, the par value, and the net common equity (embedded in the soliton)… find the common shares, additional paid-in capital, and retained earnings.
Your numbers will vary.
Stockton Mineral Operations, Inc. (SMO) or Bermuda Triangle Corporation (BTC) currently has a certain number of shares of stock that sell for a certain price per share. Assuming no market imperfections or tax effects, what will the share price be after:
Calculate the new share price and the new number of shares outstanding for each scenario.
Your numbers will vary.
Determine the gain or loss given a certain amount of watches, and determine the break-even point.
Your numbers will vary.
Given the book value of common stockholders’ equity, newly issued amount of shares at the price per share… update the table with new values, and what would happen to the common equity if they bought back.
Your numbers will vary.
Given different debt/capital ratios… determine the expected ROE, the standard deviation of ROE, and the CV
Your numbers will vary.
Quin Corp. or Tempest, Inc. has a balance sheet with certain market values for cash, fixed assets, and equity. The company has a certain number of shares of stock outstanding and has declared a dividend of a certain amount per share. The stock will go ex-dividend tomorrow, and any tax effects are ignored. Calculate the stock price today and tomorrow, and determine the balance sheet after the dividends are paid.
NOTE: There are 2 versions of this problem! This version asks you to determine the stock price today and the stock price tomorrow. Then complete a balance sheet for the company.
Your numbers will vary.
There are 2 versions of this problem! This version asks you to determine the effect of the transaction on the equity of the firm, the shares outstanding, and the share price after the repurchase.
Your numbers will vary.