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Now order the following based on the typical or most common relationship Where (1) is the lowest cost and (4) is the highest cost -

Now order the following based on the typical or most common relationship

Where (1) is the lowest cost and (4) is the highest cost

- 1. 2. 3. 4.

cost of common equity from new issuance (this is the most expensive)

- 1. 2. 3. 4.

after-tax cost of debt (see for example stocks vs bonds currently: (picture link) the yellow line is generally below the blue line )

- 1. 2. 3. 4.

cost of preferred stock (this is always higher than the after-tax cost of debt)

- 1. 2. 3. 4.

cost of common equity from retained earnings (this has more risk than preferred stock)

and please help with this one! I look forward to leaving a positive feedback!

Order the following based generally on their level of risk (with one as the lowest and 3 as the highest)

- 1. 2. 3.

Corporate Preferred Stock

- 1. 2. 3.

Corporate Common Stock

- 1. 2. 3.

Corporate Debt

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