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Cost of preferred stock? Cost of Equity? Firms cost of after-tax cost of debt? Thank you You have the following information for Eagle Corp. Assume
Cost of preferred stock?
Cost of Equity?
Firms cost of after-tax cost of debt?
Thank you
You have the following information for Eagle Corp. Assume the company's tax rate is 21 percent. Debt: 16,000 6.2 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 535,000 shares outstanding, selling for $81 per share; beta is 1.20. Preferred stock: 20,000 shares of 4.2 percent preferred stock outstanding, currently selling for $92 per share. The par value is $100. Market: 7 percent market risk premium and 3.1 percent risk-free rate. What is the firm's cost of preferred stock? Please answer using percentages with two decimal places and do not put the % in your answer. For example, if your answer was 9.5% (or.095), you would enter 9.50Step by Step Solution
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