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Jones Corp

Question 26

Multiple Choice

Jones Corp. Use this information to answer the following questions:
At the end of 2005 Jones Corp. developed the following forecasts of net income:
Jones Corp. Use this information to answer the following questions: At the end of 2005 Jones Corp. developed the following forecasts of net income: Management believes that after 2010 Jones will grow at a rate of 7% each year. Total common shareholders' was $112,768 on December 31, 2005. Jones has not established a dividend and does not plan on paying dividends during 2006 to 2010, its cost of equity capital is 12%. What would be Jones' common shareholders' equity at the end of 2009? A) $180,909 B) $208,161 C) $95,540 D) $112,768 Management believes that after 2010 Jones will grow at a rate of 7% each year. Total common shareholders' was $112,768 on December 31, 2005. Jones has not established a dividend and does not plan on paying dividends during 2006 to 2010, its cost of equity capital is 12%.
What would be Jones' common shareholders' equity at the end of 2009?


A) $180,909
B) $208,161
C) $95,540
D) $112,768

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