In the previous 5 years, Google paid an annual dividend as follows: Year Dividends 2011 2.7...

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In the previous 5 years, Google paid an annual dividend asfollows: Year Dividends 2011 2.7 2010 2.5 2009 2.2 2008 1.8 20071.5 Google is expected to pay a dividends of $3 in the next year(2012). What is the cost of equity of Google if its current stockprice is $90? 2- As a technology-based firm, Google has a high betaof 1.4. if the risk-free rate of return is 5% and the market riskpremium is 3%, calculate the cost of equity of Google using thecapital asset pricing model (CAPM)? 3- As a financial analyst, youknow that both DGM and the CAPM used in # 1 and # 2 above can beinaccurate, so you decided to calculate the average cost of equityof google. What is the average cost of equity of Google? 4- Googlehas a preferred stock that pays an annual dividend of 6$ toshareholders. What is the cost of Google’s preferred stocks if itis currently priced at $100? 5- Google has one bond outstandingthat matures in 20 years. This bond has a coupon rate of 8%, paidsemiannually. The bond currently sells for $1,124. What is thepre-tax cost of debt of Google? 6- Google currently has a 5 millioncommon shares outstanding, and a 1 million preferred sharesoutstanding, and 100,000 bonds outstanding. Use your answers in #3,#4, and #5 to calculate Google Weighted Average Cost of Capital(WACC) if the corporate tax rate is 35%. In the previous 5 years,Google paid an annual dividend as follows: Year Dividends 2011 2.72010 2.5 2009 2.2 2008 1.8 2007 1.5 Google is expected to pay adividends of $3 in the next year (2012). What is the cost of equityof Google if its current stock price is $90? 2- As atechnology-based firm, Google has a high beta of 1.4. if therisk-free rate of return is 5% and the market risk premium is 3%,calculate the cost of equity of Google using the capital assetpricing model (CAPM)? 3- As a financial analyst, you know that bothDGM and the CAPM used in # 1 and # 2 above can be inaccurate, soyou decided to calculate the average cost of equity of google. Whatis the average cost of equity of Google? 4- Google has a preferredstock that pays an annual dividend of 6$ to shareholders. What isthe cost of Google’s preferred stocks if it is currently priced at$100? 5- Google has one bond outstanding that matures in 20 years.This bond has a coupon rate of 8%, paid semiannually. The bondcurrently sells for $1,124. What is the pre-tax cost of debt ofGoogle? 6- Google currently has a 5 million common sharesoutstanding, and a 1 million preferred shares outstanding, and100,000 bonds outstanding. Use your answers in #3, #4, and #5 tocalculate Google Weighted Average Cost of Capital (WACC) if thecorporate tax rate is 35%.

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Since multiple questions have been posted I have answered the first four Question 1 Step 1 Calculate Dividend Growth Rate for Each Year The dividend growth rate for each year is determined as below 2008 Dividend for Year 2008 Dividend for Year 2007Dividend for Year 2007100 18 1515 20 2009 Dividend for Year 2009 Dividend for Year See Answer

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In the previous 5 years, Google paid an annual dividend asfollows: Year Dividends 2011 2.7 2010 2.5 2009 2.2 2008 1.8 20071.5 Google is expected to pay a dividends of $3 in the next year(2012). What is the cost of equity of Google if its current stockprice is $90? 2- As a technology-based firm, Google has a high betaof 1.4. if the risk-free rate of return is 5% and the market riskpremium is 3%, calculate the cost of equity of Google using thecapital asset pricing model (CAPM)? 3- As a financial analyst, youknow that both DGM and the CAPM used in # 1 and # 2 above can beinaccurate, so you decided to calculate the average cost of equityof google. What is the average cost of equity of Google? 4- Googlehas a preferred stock that pays an annual dividend of 6$ toshareholders. What is the cost of Google’s preferred stocks if itis currently priced at $100? 5- Google has one bond outstandingthat matures in 20 years. This bond has a coupon rate of 8%, paidsemiannually. The bond currently sells for $1,124. What is thepre-tax cost of debt of Google? 6- Google currently has a 5 millioncommon shares outstanding, and a 1 million preferred sharesoutstanding, and 100,000 bonds outstanding. Use your answers in #3,#4, and #5 to calculate Google Weighted Average Cost of Capital(WACC) if the corporate tax rate is 35%. In the previous 5 years,Google paid an annual dividend as follows: Year Dividends 2011 2.72010 2.5 2009 2.2 2008 1.8 2007 1.5 Google is expected to pay adividends of $3 in the next year (2012). What is the cost of equityof Google if its current stock price is $90? 2- As atechnology-based firm, Google has a high beta of 1.4. if therisk-free rate of return is 5% and the market risk premium is 3%,calculate the cost of equity of Google using the capital assetpricing model (CAPM)? 3- As a financial analyst, you know that bothDGM and the CAPM used in # 1 and # 2 above can be inaccurate, soyou decided to calculate the average cost of equity of google. Whatis the average cost of equity of Google? 4- Google has a preferredstock that pays an annual dividend of 6$ to shareholders. What isthe cost of Google’s preferred stocks if it is currently priced at$100? 5- Google has one bond outstanding that matures in 20 years.This bond has a coupon rate of 8%, paid semiannually. The bondcurrently sells for $1,124. What is the pre-tax cost of debt ofGoogle? 6- Google currently has a 5 million common sharesoutstanding, and a 1 million preferred shares outstanding, and100,000 bonds outstanding. Use your answers in #3, #4, and #5 tocalculate Google Weighted Average Cost of Capital (WACC) if thecorporate tax rate is 35%.