Problem 12.01 – Pierce Co.
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
Determine the cost of equity for Pierce Co. using the dividend discount model.
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Determine the cost of equity for Pierce Co. using the dividend discount model.
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Determine the cost of equity for Hoolahan Corporation given a beta, a risk-free rate, and the expected return on the market.
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You are given a dividend just issued as well as a list of historic dividends over a 4-year interval and are asked to calculate the cost of equity using the arithmetic growth rate and also with the geometric growth rate.
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Determine the cost of preferred stock for Sixth Fourth Bank.
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Determine the cost of debt for a debt issue for ICU Window Inc.
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Given the years, the percent of face value, and the tax rate, determine the pretax cost of debt and the aftertax cost of debt for Jiminy’s Cricket Farm.
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There are two versions of this problem: Problem 12.06 and Problem 12.07 both involving Jiminy’s Cricket Farm. This is the version when the company has a second debt issue and they ask for the total book value, total market value, and overall cost of debt.
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Determine the company’s WACC and the after-tax cost of debt.
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Find the company’s WACC.
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Determine the debt-equity ratio for the company given a weighted average cost of capital.
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