Summerdahi Resort’s common stock is currently trading at $37.15 a share. The stock is expected to...

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Summerdahi Resort’s common stock is currently trading at$37.15 a share. The stock is expected to pay a dividend of $2.50 ashare at the end of the year (D1 = $3.00), and the dividend isexpected to grow at a constant rate of 8.25% a year. What is itscost of common equity?
5. Booher Book Stores has a beta of 1.30. The yield on a3-month T-bill is 4.5%. The market risk premium is 7.5% and thereturn on an average stock in the market last year was 12%. What isthe estimated cost of common equity using CAPM?
6. Shi Import Export’s balance sheet shows $250 million indebt, $50 million in preferred stock, and $300 million in totalcommon equity. Shi’s tax rate is 23%, rd = 8.5%, rp = 9.87%, and rs= 15.5%. If Shi has a target capital structure of 40% debt, 5%preferred stock and 55% common stock, what it its WACC?

please complete in excel

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Summerdahi Resorts common stock is currently trading at 3715 a share The stock is expected to pay a dividend of 250 a share at the end of the year D1 300 and the dividend is expected to grow at a constant rate of 825 a year What is its cost of common equity We have following formula to calculate cost of common equity with constant dividend growth P0 D1 re g Where Current Price of stock P0 3715 per share Expected Dividend next year See Answer

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Summerdahi Resort’s common stock is currently trading at$37.15 a share. The stock is expected to pay a dividend of $2.50 ashare at the end of the year (D1 = $3.00), and the dividend isexpected to grow at a constant rate of 8.25% a year. What is itscost of common equity?5. Booher Book Stores has a beta of 1.30. The yield on a3-month T-bill is 4.5%. The market risk premium is 7.5% and thereturn on an average stock in the market last year was 12%. What isthe estimated cost of common equity using CAPM?6. Shi Import Export’s balance sheet shows $250 million indebt, $50 million in preferred stock, and $300 million in totalcommon equity. Shi’s tax rate is 23%, rd = 8.5%, rp = 9.87%, and rs= 15.5%. If Shi has a target capital structure of 40% debt, 5%preferred stock and 55% common stock, what it its WACC?please complete in excel