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  3. 1- expected cash dividends are $4.00, the divid

1- Expected cash dividends are $4.00, the dividend yield is 6%, flotation...

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Finance

1-

Expected cash dividends are $4.00, the dividend yield is 6%, flotation costs are 7% of price, and the growth rate is 3%. Compute the approximate cost of new common stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

  • 9.20%

  • 10.45%

  • 9.45%

  • 11.55%

2-

Pedro Gonzalez will invest $22,000 at the beginning of each year for the next 8 years. The interest rate is 11 percent. What is the future value? Use Appendix C to calculate the answer.

  • $260,898.

  • $289,608.

  • $311,608.

  • $280,644.

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