10 years ago firm issued 30 yr debt with a FV of $1,000. Today that debt is rated B and is worth 733.33 in the market. The coupon rate is 10% per year and interest payments are made semianually. Stock trading at $26 per share which is just paid a dividend of 3.0806 per share and dividends are expected to grow 5.5% per yr., beat 1.75

Uses preferred shares to finance its operations. The preferred shares outstanding pay a dividen of 6.26 per share and sell $40 in the market, risk free rate is 4%, expected return on market is 12%.

find yield to maturity on debt?show work

using CAPM, calculate the firms cost of internal equity? show work

use dividend growth model, calculate the firms cost of internal equity? show work

the firms investment bank charges 7.4% underwriting fee to issue new shares. what would the cost of equity, if you use dividend growth model? show work