Calcukate the require rate of return on the common equity of a company given the following information: Divident just paid is $$1\mathrm{.}24/$share; expected growth of dividend in the perpetuity is $3\mathrm{.}6\%$ ; the current market price of the company's common stock is $$24\mathrm{.}60.($ans: $8\mathrm{.}64\%,8\mathrm{.}82\%,5\mathrm{.}22\%,5\mathrm{.}04\%)$

Question $3$

Calculate the required rate of return on of debt of a company given the information : debt is the form of $12$ year, $4\mathrm{.}8\%($semiannuall$)$ bondd with a face value of $$1000$ and market price of $$922\mathrm{.}64.($Ans: $5\mathrm{.}70\%,2\mathrm{.}85\%,5\mathrm{.}71\%,3\mathrm{.}19\%,5\mathrm{.}38\%)$