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please answer both parts to question c A company has a stock price of $55, and intends to pay a dividend of $2.00 next year.
please answer both parts to question c
A company has a stock price of $55, and intends to pay a dividend of $2.00 next year. If the dividend is growing at 29, what is the cost of common stock for this firm? 7.33% B 6.44% 6.73% 5.64% 4 Points Question 13 American Airlines has 55bn in debt outstanding, with a yield to maturity of 6%, and a coupon rate of 5%. They have 200m preferred stock outstanding with a price in the market of $15. The cost of preferred stock is 8%. They also have 500m common stock outstanding trading at $50, and the cost of common stock is 10%. The corporate tax rate for the American Airlines is 20%. What is the weighted Average Cost of Capital (WACC)? A 9.03% B 7.07% 8.55% 7.62% Step by Step Solution
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