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a. What is an eatimate of Crowth Company's cont of equity? e. Growth Company faces a 35% tax rale. Given the insormation in parts (a)

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a. What is an eatimate of Crowth Company's cont of equity? e. Growth Company faces a 35% tax rale. Given the insormation in parts (a) through (d), and your angwers to those problems. ahat is Growth Company's Note: Assume that the firm will always be able fo utize its ful interest tax shieid. What is an estimate of Growth Company's cost of equity? The required return (cost of capitai) of levered equity is \& (Found to two decimal piaces) The cost of capitai for preferred stpck is Y. Yound to two decimal places.) from the drop-doan menus.) The pre-tax cost of debl is the frimis YTM on current debt, Since the firm recently issued debt at par, then the coupon rate of that debt muat be the YTM of the debt. Thus, the peetax cost of detals d. Growth Company has a 6 mulicon common shares oustanding and 1.4 mifion preferred thares outstanding, and its equity Ras a teal bock vi lablates hane a markef vacye of $20.5 millon. If Growth Compary/s common and peeferred shares are priced as in parts (a) and (b), what is the market value of Growth Company's ai. The market value of assets is 1 milien. (Round to two docimal places.) the YTM of the debt. Thus, the pretax cost af gobe is d. Grow 4.6 milhon conmon shares outstanding and 1.4 millon peeferred shares outatanding, and its equity has a toeal book value of $50.3 mision-its labilies have a market value of $205 fy's common and preferred shares are priced as in parts (a) and (b), whak is the market value of Grosth Company's atsees? this is milion. (Round to two decimal places.) miliont. If Growth Company's comnon and preferred shaces are priced as in parts (a) and (b), What is the market value of Growth Comparty's assets? The market value of assets is 3 milien. (Found to two decimal places.) The weighted average cost of captal is K. (Found to two decimal plates.)

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