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NEW QUESTION: 1
Seasons, Inc. has just decided to issue 1 million shares of new equity. The firm has had a steady dividend growth of 3% and is expected to continue along this path, having just paid a $3.23 per share dividend. The flotation costs for the new equity amount to 2.2% of the total capital raised and the firm receives $31.4 million before flotation costs, calculate the cost of external equity.
A. 13.52%
B. 14.19%
C. 13.23%
D. 13.83%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
IF F is the percentage flotation cost and P is the amount of new equity raised per new share, then Ke = D1/
[P(1-F)] + g, where Ke is the cost of external equity. Here, g = 3%, D1 = 3.23*(1+3%) = $3.32, P = $31.4 and F = 2.2%. Therefore, Ke = 3.32/(31.4*(1-0.022)) + 3% = 13.83%.

NEW QUESTION: 2
A series of menus from which a person can access virtually any type of textual information is known as:
A. Hyper-text based tool
B. Gophers
C. Consortium
D. Symantec
Answer: B

NEW QUESTION: 3
How many bits are in the default self-signed certificate RSA keys?
A. 0
B. 1
C. 2
D. 3
Answer: D

NEW QUESTION: 4
Which of the following functions is guaranteed to be executed after the DOM is ready? (Assume that the page only includes the prototype.js library.)
A. $(documerit).ready(function() { . . . })
B. $("dom:loaded", function(). . . })
C. document.event("html:load", function(). . . })
D. document.observe("dom:loaded", function(). . . })
E. $(function() { . . . })
F. document.observe("html:loaded", function(). . . })
Answer: D

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