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Debt ratio/common cost equity

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Equity Multiplier of 3.71. Assets are financed with combined common equity and long term debt.

Debt ratio?

Stock sells at 71 per share. Just paid dividends of 2.12. Dividend anticipated to increase constant rate of 5.5 per yr.

Stock price one year from now?

Common stock is presently trading @ 17% per share. Expected to pay dividend .81 at end of yr. Dividend anticipated to grow constant rate of 3.9% yr.

Common cost equity?

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Debt ratio/Common cost equity
Equity Multiplier of 3.71. Assets are financed with combined common equity and long term debt.

Debt ratio?

Equity Multiplier = Total assets/Common equity
Total assets = Total Debt + Common equity
Assume total assets is 371 and common equity is 100. Total debt will be equal to 271.
Debt ratio ...

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