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ill rate need answer asap 10% 36) A firm has determined its optimal capital structure which is composed of the following sources and target market

ill rate need answer asap
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10% 36) A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions. Target Market Source of Capital Proportions Long-term debt 50% Preferred stock Common stock equity 40% Debt: The firm can sell a 6-year, $1,000 par value, 7 percent bond for $840. Preferred Stock: The firm has determined it can issue preferred stock at $65 per share par value. The stock will pay a $9 annual dividend. The cost of issuing and selling the stock is $5 Common Stock: A firm's common stock is currently selling for $12 per share. The dividend expected to be paid at the end of the coming year is $2.00. Its dividend payments have a growth rate of 4%. It is expected that to sell, a new common stock issue must be underpriced $2 per share in floatation costs. Additionally, the firm's marginal tax rate is 40 percent. per share. Kd - Kp = Ks = Kn= WACC =

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