National home rentals has a beta of 1.06, a stock price of $17, and recently paid an annual dividend of s.92 a share. the dividend growth rate is 22 percent. the market has a rate of return of 11.2 percent and a risk premium of 7.3 percent. what is the estimated cost of equity using the average return of the capm and the dividend discount model?
Full Answer
Is National Home Rentals a good dividend stock?
National Home Rentals has a beta of 1.06, a stock price of $17, and recently paid an annual dividend of $.92 a share. The dividend growth rate is 2.2 percent. The market has a rate of return of 11.2 percent and a risk premium of 7.3 percent.
What is National Home Rentals'dividend growth rate?
4. .16184 + .11564)/2 = .1387 National Home Rentals has a beta of 1.06, a stock price of $17, and recently paid an annual dividend of $.92 a share. The dividend growth rate is 2.2 percent.
What is the beta of Country Road Industries stock?
1. 13.47 % 2. Re = .034 + 1.33(.1097-.034) Stock in Country Road industries has a beta of 1.62 percent. The market risk premium is 8.2 percent while T-bills are currently yielding at 2.9 percent. Country Road's most recent dividend was $1.87 per share, and dividends are expected to grow at 3.8 percent annual rate indefinitely.
What is the beta and tax rate for AZ Products?
The firm has a beta of 1.33 and a tax rate of 23 percent. What is the weighted average cost of capital? 1. 10.32 Percent AZ Products has 140,000 shares of common stock outstanding at a market price of $27 a share.
What is the beta of Street Corporation?
Street Corporation's common stokc has a beta of 1.33. The risk-free rate is 3.4 percent and the expected return on the market is 10.97 percent. What is the cost of equity?
What is Travis and Sons' capital structure?
Travis & Sons has a capital structure which is based on 45 percent debt, 5 percent preferred stock, and 50 percent common stock. The pre-tax cost of debt is 8.3percent, the cost of preferred is 9.2 percent, and the cost of common stock is 15.4 percent. The company's tax rate is 21 percent. The company is considering a project that is equally as risky as the overall firm. This project has initial costs of $287,000 and annual cash inflows of $91,000 , $248,000, and $145,000 over the next three years, respectively. What is the projected net present value of this project?