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The answers for D. and E. are wrong. Consollatated Pasta...

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Finance

The answers for D. and E. are wrong.
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Consollatated Pasta is curtenty expected to pay annual diviends of 510 a share in perpetuat on the 2.3 millon shares that are outstanding. Shareholders require a tok rate of return from Consolidated stock. a. What is the price of Consoliated stock? Note: Do not reand intermediene calculations. b. What is the total market value of its equity? Note: Enter your ankwer in millions. Consolidated now decides to increase next yeae's divigend to 520 a shere, whout changing as inestment or barrowing plans Thereatter the compery wit revert to its policy of distributing 530 millian a year c. How much new equity capital will the company need to raine to finance the extra divedend payntsent? Note: Enter your answer in militions. 6. What wili be the total present value of dividendh paid each year on the now snaies that the company wit need fo asue? Note: Enter your answer in miltions. 6. What wili be the tranter of vilue from the odd chwerholdes to the new shoreholdeis? Note: Entet your answer in militiont. C. is this figure more than, less than, or the same as tine extra dividend that the old shereholderi wil recehe

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