In the case of existing shares cost of equity is computed under dividend yield method by dividing dividend per share with

Related MCQs

• Equity shares of phonex Ltd are quoted in the market at Rs17. The dividend expected a year hence is Rs1.50. The expected rate of dividend growth is 8%. The cost of equity capital to the company is
• Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that for every 1 unit of equity, the company can raise 2 units of debt. 2. The cost of floating a debt is greater than the cost of floating an equity issue. State True or False:
• When preference shareholders have a right to convert their preference shares in to equity shares after a pre-decided dare such shares are called -------- shares.
• Shares of face value of 10 are 80% paid up. The company declares a dividend of 50%. Amount of dividend per share is
• The dividend on equity shares is only paid when dividend on ---------- has already been paid
• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• Dividend yield method the cost of equality is ascertained as a percentage of
• If the annual cash inflows are constant, the payback period can be computed by dividing cash outlay by ----------------
• Cost of Equity Share Capital is more than cost of debt because:
• EVA= ___________ - (Equity capital x % of cost of equity capital