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Expressed as a percentage, what is the cost of common stock capital for this firm according to the DDM model with the following information? Debt
Expressed as a percentage, what is the cost of common stock capital for this firm according to the DDM model with the following information?
| Debt | $125,657,209.08 | YTM on Similar Securities | 7.64% | Risk Free Rate | 3.00% | ||
| Preferred Stock | $12,385,669.43 | Tax Rate | 25.00% | Market Return | 15.00% | ||
| Common Stock | $305,882,225.71 | Equity Beta | 0.5 | ||||
| Preferred Stock Price | $11.80 | Common Stock Price | $17.79 | ||||
| Next Preferred Dividend | $9.13 | Next Common Dividend | $2.60 | ||||
| Long Run Growth Rate | 3.00% |
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Principles Of Public Finance
Authors: Toshihiro Ihori
1st Edition
9811023883, 978-9811023880
