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also what is cost of preferred stock. thank you Debt 75.000 bonds with a 6.0% coupon rate. payable annually. 15 years to maturity. selling at

image text in transcribedalso what is cost of preferred stock. thank you
Debt 75.000 bonds with a 6.0% coupon rate. payable annually. 15 years to maturity. selling at $1.150 per bond. 900,000 shares of common stock Common Stock outstanding. The stock sells for a price of $75 per share and has a beta of 1.5 100.000 preferred shares outstanding Preferred Stock currently trading at $90 per share with an annual dividend payment of $4.50 he Market The market risk premium is 5% an risk free rate is 3% Tax Rate 35% What is the firm's cost of common equity (retained earnings)? 12.18% 9,42% 8.50% 11.50% 10.50%

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