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eBook Tresnan Brothers is expected to pay a $2.20 per share dividend at the end of the year (l.e., D: = $2.20). The dividend is
eBook Tresnan Brothers is expected to pay a $2.20 per share dividend at the end of the year (l.e., D: = $2.20). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 13%. What is the stock's current value per share? Round your answer to the nearest cent. eBook Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 8%, and its tax rate is 25%. Pearson's CrO estimates that the company's WACC is 10.70%. What is Pearson's cost of common equity? Do not round Intermediate calculations. Round your answer to two decimal places %
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