Growth? Company's current share price is

$ 20.20$20.20

and it is expected to pay a

$ 0.95$0.95

dividend per share next year. After? that, the? firm's dividends are expected to grow at a rate of

3.9 %3.9%

per year.

a. What is an estimate of Growth? Company's cost of? equity?

b. Growth Company also has preferred stock outstanding that pays a

$ 1.85$1.85

per share fixed dividend. If this stock is currently priced at

$ 28.20$28.20?,

what is Growth?Company's cost of preferred? stock?c. Growth Company has existing debt issued three years ago with a coupon rate of

6.1 %6.1%.

The firm just issued new debt at par with a coupon rate of

6.9 %6.9%.

What is Growth? Company's cost of? debt?d. Growth Company has

4.64.6

million common shares outstanding and

1.21.2

million preferred shares? outstanding, and its equity has a total book value of

$ 50.0$50.0

million. Its liabilities have a market value of

$ 19.9$19.9

million. If 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?e. Growth Company faces a

40 %40%

tax rate. Given the information in parts

?(a?)

through

?(d?),

and your answers to those? problems, what is Growth? Company's WACC?

a. What is an estimate of Growth? Company's cost of? equity?

The required return? (cost of? capital) of levered equity is

nothing?%.

?(Round to two decimal? places.)b. Growth Company also has preferred stock outstanding that pays a

$ 1.85$1.85

per share fixed dividend. If this stock is currently priced at

$ 28.20$28.20?,

what is Growth?Company's cost of preferred? stock?The cost of capital for preferred stock is

nothing?%.

?(Round to two decimal? places.)c. Growth Company has existing debt issued three years ago with a coupon rate of

6.1 %6.1%.

The firm just issued new debt at par with a coupon rate of

6.9 %6.9%.

What is Growth? Company's cost of? debt? ? (Select from the? drop-down menus.)The? pre-tax cost of debt is the? firm's YTM on current debt. Since the firm recently issued debt at? par, then the coupon rate of that debt must be

?

less than

greater than

equal to

the YTM of the debt.? Thus, the? pre-tax cost of debt is

?

6.9%

6.1%

. d. Growth Company has

4.64.6

million common shares outstanding and

1.21.2

million preferred shares? outstanding, and its equity has a total book value of

$ 50.0$50.0

million. Its liabilities have a market value of

$ 19.9$19.9

million. If 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?The market value of assets is

?$nothing

million.???(Round to two decimal? places.)e. Growth Company faces a

40 %40%

tax rate. Given the information in parts

?(a?)

through

?(d?),

and your answers to those? problems, what is Growth? Company's WACC?The weighted average cost of capital is

nothing?%.

?(Round to two decimal? places.)