1. Firm XYZ issues a constant amount of preferred dividends at an annual value of $12. Its current preferred stock price is $95. What is the cost of preferred equity for Firm XYZ? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"

10 points

QUESTION 5

1. "Continue considering Firm XYZ. Assume that the equity beta for Firm XYZ is 1.12. The Yield on 10-year treasuries is 2%, and that the market risk premium for the year is 8%. What would be the cost of equity for Firm XYZ? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05

Continue considering Firm XYZ. If the dividends for Firm XYZ are the same for common and preferred stock, and the price for common stock is $82. What would be the cost of equity? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"