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Choice America Bank has the following equity allocation. The firm's CFO is considering an increase or decrease in one or multiple equity sources. Assume a
Choice America Bank has the following equity allocation. The firm's CFO is considering an increase or decrease in one or multiple equity sources. Assume a 5\% flotation cost per security (bond, preferred stock and common stock), please calculate the cost of equity for each and the total combined. Please be sure to use 4 decimal places in your calculations and you may complete on Word, Excel (see sample worksheet) or PDF. For Common Equity, you may use either the dividend growth model or CAPM
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