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Consider the following three types of payments that could be made by a normal operating firm. They are interest, common dividends, and preferred dividends. Based
Consider the following three types of payments that could be made by a normal operating firm. They are interest, common dividends, and preferred dividends. Based on the payments mentioned, rank INTEREST payments in terms of the order of payment, if the firm is liquidating. Select one: a. third b. second c. first d. fourth Yesterday, the Peach Corporation paid a dividend of $3.50 per share. The dividend is expected to grow at a constant rate of 10% per year. The price of the company common stock today is $40 per share. The applicable corporate tax rate is 35%. The COST OF EQUITY is: Select one: ca. 26,4% b. 19.6% C. 20.1% O d. 17.6%
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