1 Find the after tax cost of preferred stock for the following firm 5 years ago, Niko Corporation issued bonds that originally had a maturity of 20 years These bonds were $1,000 par value bonds that were issued with a 7 coupon rate These bonds are currently selling for $1,100 Niko Corporation also has issued common stock in the past and has an estimated beta of 1 3 The stock has historically averaged a return of 12 and is expected to have a return of 10 this year The stock just paid a dividend of $5 and is currently selling for $80 The firm expects common dividends to grow by 5 constantly forever The firm additionally has preferred stock outstanding that was issued with a stated dividend of $11 Currently, the preferred stock is trading for $130 Niko Corporation commonly pays a tax rate of 20 The firm is expecting to finance with 40 debt, 50 common equity, and the remainder as preferred stock This year, the S P 500 is producing an average return of 12 while Treasury bonds are average 2 2 Find the after tax cost of debt for the following firm 5 years ago, Niko Corporation issued bonds that originally had a maturity of 20 years These bonds were $1,000 par value bonds that were issued with a 7 coupon rate These bonds are currently selling for $1,100 Payments are made semiannually Niko Corporation also has issued common stock in the past and has an estimated beta of 1 3 The stock has historically averaged a return of 12 and is expected to have a return of 10 this year The stock just paid a dividend of $5 and is currently selling for $80 The firm expects common dividends to grow by 5 constantly forever The firm additionally has preferred stock outstanding that was issued with a stated dividend of $3 Currently, the preferred stock is trading for $90 Niko Corporation commonly pays a tax rate of 10 The firm is expecting to finance with 40 debt, 50 common equity, and the remainder as preferred stock This year, the S P 500 is producing an average return of 12 while Treasury bonds are average 2

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1. Find the after-tax cost of preferred stock for the following firm. 5 years ago, Niko Corporation issued bonds that originally had a maturity of

Find the after-tax cost of preferred stock for the following firm.

5 years ago, Niko Corporation issued bonds that originally had a maturity of 20 years. These bonds were $1,000 par value bonds that were issued with a 7% coupon rate. These bonds are currently selling for $1,100.

Niko Corporation also has issued common stock in the past and has an estimated beta of 1.3. The stock has historically averaged a return of 12% and is expected to have a return of 10% this year. The stock just paid a dividend of $5 and is currently selling for $80. The firm expects common dividends to grow by 5% constantly forever.

The firm additionally has preferred stock outstanding that was issued with a stated dividend of $11. Currently, the preferred stock is trading for $130.

Niko Corporation commonly pays a tax rate of 20%. The firm is expecting to finance with 40% debt, 50% common equity, and the remainder as preferred stock.

This year, the S&P 500 is producing an average return of 12% while Treasury bonds are average 2%.

Find the after-tax cost of debt for the following firm.

The firm additionally has preferred stock outstanding that was issued with a stated dividend of $3. Currently, the preferred stock is trading for $90.

Niko Corporation commonly pays a tax rate of 10%. The firm is expecting to finance with 40% debt, 50% common equity, and the remainder as preferred stock.

This year, the S&P 500 is producing an average return of 12% while Treasury bonds are average 2%.