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Both A and B, please. 9. A company has the following capital structure: Security Expected return Debt 8 Preferred stocks 11 Common stocks A. What

image text in transcribed Both A and B, please.

9. A company has the following capital structure: Security Expected return Debt 8 Preferred stocks 11 Common stocks A. What is the expected return on equity (cost of equity): Market value 700 800 1100 18 (a) 10.05% (b) 14.05% (C) 12.05% (d) 15.05% (e)....... B. What discount rate should the company use for evaluating investment projects with similar risk (Tc=16%)? (a) 9.81% (b) 11.81% (C) 12.81% (d) 13.81% (e).......... 9. A company has the following capital structure: Security Expected return Debt 8 Preferred stocks 11 Common stocks A. What is the expected return on equity (cost of equity): Market value 700 800 1100 18 (a) 10.05% (b) 14.05% (C) 12.05% (d) 15.05% (e)....... B. What discount rate should the company use for evaluating investment projects with similar risk (Tc=16%)? (a) 9.81% (b) 11.81% (C) 12.81% (d) 13.81% (e)

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