Trahern Baking Co. common stock sells for $32.50 per share….
Trahern Baking Co. common stock sells for $32.50 per share. It expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, and its expected constant dividend growth rate is 6.0%. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock? exam spreadsheet for final exam.xlsx
Read DetailsClark collects sneakers, and Maria collects whiskey. Both pr…
Clark collects sneakers, and Maria collects whiskey. Both products can see a large difference in the retail price and the price on the secondary market. Maria believes that the difference is greater for whiskey, and Clark believes it is greater for sneakers. In order to settle the argument, both Clark and Maria randomly select a sample of their collections, and record the difference in retail and secondary market prices. Based on a sample size of 45, Clark finds an average difference of 175.8% with a standard deviation of 49.3%. Based on a sample of 34, Maria finds an average difference of 167.0% with a standard deviation of 23.5%. Use hypothesis testing to try to settle the debate between Clark and Maria at the 10% significance level. Calculate the test statistic. Round your answer to the third decimal place.
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