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Growth Compary's current share prico is $20.25 and it is expected to pay a $1.20 dividend per share next yeat. Aller that, tho firm's dividends

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Growth Compary's current share prico is $20.25 and it is expected to pay a $1.20 dividend per share next yeat. Aller that, tho firm's dividends are axpected to grow at a rale uf 4.4 ss per year. a. What is an estinath of Groath Company's cost of equity? b. Growth Company also has prelerred stock outstanding that pays a $2.15 per share fixed dividend. If this stock is currently priced at $2825, what is Grower Companys cart of prefered stock? c. Growth Company has existing debt issaed three years ago with a coupon rate of 6.3%. The firm just lssued new debt at par with a coupon rase of 6.2%. What is Growth Company' prefar cost of debc? d. Growth Company has 4.6 million common shares outstanding and 1.2 milion proterred shares outstanding. and ats equily has a toeal book value of S50.1 milion. Its liatillies have a market velue of 519.7 million. If Growth Company's common and proterred shares are priced as in parts (a) and (b). what is the market value of Geowith Company's asterts? e. Groweh Compary faces a 25% tax rate. Given the information in parts (a) through (d), and your answers to those problems, what is Growth Company's WACC? Nose: Assume that the firm will always be able to utifize its full interest tax shield

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