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Baling Bhd is issuing new common stock at a market price of RM26. Dividends last year were RM1.40 and are expected to grow at an
Baling Bhd is issuing new common stock at a market price of RM26. Dividends last year were RM1.40 and are expected to grow at an annual rate of 6% forever. Calculate Balings cost of common equity capital.
vii. Bermuda Bhd is planning to issue preferred stock. The stock is expected to sell for RM96 a share and will have a RM100 par value on which the firm will pay a 12% dividend. Calculate the cost of capital to the firm for the preferred stock.
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