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find a,b,c,d, and e FIN-2013-006-Fall-2021-Principles Business (1) Samuel Mar | 1V26/211:10 PM E Homework: Homework 6 Question 20, P 13-17 (s. HW Score: 1.67%. 1

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FIN-2013-006-Fall-2021-Principles Business (1) Samuel Mar | 1V26/211:10 PM E Homework: Homework 6 Question 20, P 13-17 (s. HW Score: 1.67%. 1 of 60 points Save Part 1016 Points: 0 of 5 Growth Company's current share price is $20.30 and it is expected to pay a $0.90 dividend per sharo next year Atter that, the firm's dividends are expected to grow at a ratio of 3.9% pet you, a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a $2.30 per share fred dividend. If this stock is currently priced at $28.00, what is Growth Company's cost of preferred stock? Growth Company has existing debt issued three years ago with a coupon rate of 5.7%. The fim just issued new det at par with a coupon rate of 6.2% What is Growth Companys cout of det? d. Growth Company has 49 million common shares outstanding and 14 million preferred shares outstanding, and sequity has a total book value of $50.3 milionis libilities have a market value of 520 2 million I Growth Company's common and preferred shares are priced as in parts (a) and (b). what is the market value of Growth Company's assets ? .. Growth Company faces a 38% tax rate. Given the information in parts (a) through (d), and your answers to those problems, what is Growth Company's WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield a. What is an estimate of Growth Eompany's cost of equity? The required retum (cost of capital) at levered equity in % (Round to bwo decimal places) Clear all Check

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