If preferred stock price Pp = $47.50, dividend Dp = $3.80, whats the required rate of return rp?

10-3 For Company XYZ, if 40% of its funding comes from Debt; 60% from Common equity; cost of debt rd = 9%; Tax T = 40%; WACC = 9.96%; whats the required rate of return for equity investor rs ?

10-4 For Company ABC, if stock price P0 = $30; dividend paid at the end of period 1 D1 = $3.00; growth rate g = 5%; a. Whats the required rate of return for equity holder rs = ? b. If the flotation cost F = 10%; Whats the required rate of return for equity holder rs = ?

10-5 If the risk free rate or return rRF = 9%, market average return rM = 13%, beta b = 1.6, whats the required rate of return for equity capital, using CAPM model?

10-6 If a firms bond rate is 12%, the risk premium is estimated as 4%, whats the required rate of return for equity capital rs?

10-7 Questions 10-4 (a), 10-5, and 10-6 represent three approaches to calculate required rate of return for equity capital, if you have equal confidence for all three approaches, whats the average required rate of return for equity capital?