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Having trouble with this problem anyone know how to solve ?? Thanks. Question 19 2 pts HVMF group wants to estimate the cost of common
Having trouble with this problem anyone know how to solve ?? Thanks.
Question 19 2 pts HVMF group wants to estimate the cost of common stock. The company's stock price is $45 per share today. The company recently paid a dividend of $3.2 per share. The company has a beta of 0.9 and a dividend growth rate of 7%. The company dividend for preferred stock 9.8% and the price for the preferred stock is $989 The par value is set at $1,000. The company's long-term bonds currently offer a yield to maturity of 7.8%. The company has $90M in long-term debt and $270M in preferred stock from the pool of $900M asset. 10-year T-note rate is 3.5% and Market Premium is 11.5%. The tax rate is 40% O 13.85% O 14.61% O 14.23% 8.54% O 9.51%Step by Step Solution
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