Bank id 269610 type multiple choice correct teall

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QUESTION:8[QUESTION BANK ID:269610]TYPE:MULTIPLE CHOICECORRECTTeall Development Company hired you as a consultant to help them estimate its cost of capital. You havebeen provided with the following data: D1 = $1.45; P0 = $22.50; and g = 6.50% (constant). Based on the DCF approach, what is the cost of common equity assuming no flotation costs?  << HIDE ANSWERSA11.10%B11.68%C12.30%D12.94%E13.59%
QUESTION:9[QUESTION BANK ID:269633]TYPE:MULTIPLE CHOICECORRECT
D. Paul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be?<< HIDE ANSWERS
QUESTION:10[QUESTION BANK ID:269628]TYPE:MULTIPLE CHOICECORRECT
As a member of UA Corporation’s financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow?  Sales revenues, each year$42,500Depreciation$10,000Other operating costs $17,000Interest expense$4,000Tax rate35.0%<< HIDE ANSWERS

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