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Assume XYZ firm expected common dividend is $112; the dividend rate historically increases at 12%. The current price of the common stock is $560 and
Assume XYZ firm expected common dividend is $112; the dividend rate historically increases at 12%. The current price of the common stock is $560 and per share floating cost for Common share is $60. The price preferred share is $250 and the paid return from the preferred share is $50. Tax rate 15% and YTM is 8%. Capital structure as follows- Preferred share 25%, debt 35% and remaining capital collected form common share Calculate the Weight of Common share for XYZ firm in percentage
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