13 HW Assignment - FIN500 F... Question 12, P 13-17 Up HW Score: 66 67%, 10 of 15 points Save Part 1 of 5 Points: 0 of 1 Growth Company's current share price is $2000 and it is expected to pay a $1.00 dividend per share next year. After that, the fem's dividends are expected to grow at a rate of 3.7% per your a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a 52 30 per share fixed dividend. If this stock is currently priced at $28.05, what is Growth Company's cost of preferred stock? c. Growth Company has existing debt issued three years ago with a coupon rate of 6.1% The first issued new debt at par with a coupon rate of 69% What is Growth Company's cost of de d. Growth Company has 4.7 million common shares outstanding and 1.5 million preferred shares outstanding, and is equty has a total book value of $50.1 milion Islabies have a market value of 1.7 milion Growth Company's common and proferred shares are priced as in parts (a) and (b). what is the market value of Growth Company's assets? e. Growth Company faces a 25% tax rate. Given the information in ports (a) through (d), and your answers to those problems, what is Growth Company's WACC? Note: Assume that the firm will always be able to utize its full interest tax shield a. What is an estimate of Growth Company's cost of equity The required retum (cost of capital of lovered equity in the Round to two decimal places) Help me solve this View an example Clear