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10. Using the table, what is the Cost of Debt?* a. 0.29 b. 0.09 c. 0.19 d. 0.39 11. Using the information from Question 10,

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10. Using the table, what is the Cost of Debt?*

a. 0.29

b. 0.09

c. 0.19

d. 0.39

11. Using the information from Question 10, what is the Cost of Preferred Stock?*

a. 0.35

b. 0.55

c. 0.45

d. 0.25

12. Using the information from Question 10, what is the Cost of Equity?*

a. 0.34

b. 0.54

c. 0.44

d. 0.24

13. Using the information from Question 10, what is the Average Cost of Capital?*

a. 0.14

b. 0.34

c. 0.24

d. 0.44

image text in transcribed
Capital Structure Debt: 45% Preferred Stock: 35% Equity: 20% DEBT: 25% Preferred Stock Sales Price (par value): 200 Dividend: 50 Common Stock Sales Price: 90 Dividend: 20 Expected Growth Rate: 12% Effective Tax Rate: 26%

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