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5. (a) Estimate the cost of preferred stock (required return of preferred stock). (b) Redo question 3 including preferred stock as a financing source, and

5. (a) Estimate the cost of preferred stock (required return of preferred stock). (b) Redo question 3 including preferred stock as a financing source, and assume the target weights are as follows: notes, 5 %; bonds, 40%; preferred, 5%; equity, 50%.

6. What additional information would you like in order to make more informed estimates about the cost of equity and the cost of preferred stock?

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