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Please answer all the questions. Thank you. 10-1 if before tax cost of debt ra = 0.12, tax rate (T)=35%, what is the after tax
Please answer all the questions.
Thank you.
10-1 if before tax cost of debt ra = 0.12, tax rate (T)=35%, what is the after tax cost of debt? 10-2 If preferred stock price Pp = $47.50, dividend Dp = $3.80, what's the required rate of return Ip? 10-3 For Company XYZ, if 40% of its funding comes from Debt; 60% from Common equity; cost of debt ra = 9%; Tax T = 40%; WACC = 9.96%; what's the required rate of return for equity investor rs? 10-4 For Company ABC, if stock price Po = $30; dividend paid at the end of period 1 D1 = $3.00; growth rate g = 5%; a. What's the required rate of return for equity holder rs = ? b. If the flotation cost F = 10%; What's the required rate of return for equity holder rs =
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