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16 PLEASE USE ONE OF THE FORMULAS PROVIDED Cost of Common Equity kcs=PcsD1+g Cost of Preferred Equity kps=PpsDivps Cost of Debt After-tax cost of debt
16 PLEASE USE ONE OF THE FORMULAS PROVIDED
Cost of Common Equity kcs=PcsD1+g Cost of Preferred Equity kps=PpsDivps Cost of Debt After-tax cost of debt = Yield-to-Maturity * (1 - tax rate ) Weighted Average Cost of Capital (WACC) Vodka Vanities (VV) just paid a $2.00 dividend on its common stock (it's only form of capital). VV's stock is currently trading for $48.50 per share. Your analysis indicates that VV's dividend should grow at 2.5% per year for the foreseeable future. What is VV's cost of capitalStep by Step Solution
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