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3. Assume the following capital structure characteristics for IWOULDDAGROWN Corporation: Debt $500,000,000 Preferred Stock = $100,000,000 Common Equity = $400,000,000 6.00% required return on debt

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3. Assume the following capital structure characteristics for IWOULDDAGROWN Corporation: Debt $500,000,000 Preferred Stock = $100,000,000 Common Equity = $400,000,000 6.00% required return on debt - rd T 25% Corporate Tax Rate s Required Return on Preferred Stock s Required Return on Common Stock 5.25%; 12%

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