question archive 1) Universal Forest's current stock price is $154
1) Universal Forest's current stock price is $154
Subject:FinancePrice: Bought3
1) Universal Forest's current stock price is $154.00 and it is likely
to pay a $5.23 dividend next year. Since analysts estimate Universal Forest will have a 13.0 percent growth rate, what is its required return?
2) Which of the following information may NOT1) Dividends to be paid yearly.2) Growth rate of the dividends.
be required in valuing a preferred share?
3) Required rate of return by the preferred shareholders.
4) None of the above.
5) Bondage Supply Company expects sales next year to be $350,000. Inventory and accounts receivable will have to be increased by $85,000 to accommodate this sales level. The company has a steady profit margin of 10 percent, with a 35 percent dividend payout.
How much external funding will Bondage Supply Company have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.
