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Please Answer question 9-5 only 9-5. (Cost of preferred stock) The preferred stock of Texas Southern Power Company sells for $51 and pays $4.25 in
Please Answer question 9-5 only
9-5. (Cost of preferred stock) The preferred stock of Texas Southern Power Company sells for $51 and pays $4.25 in dividends. The net price of the security after issuance costs is $48.00. What is the cost of capital for the preferred stock? 9-6. (Cost of debt) The Zephyr Corporation is contemplating a new investment to financed 33 percent from debt. The firm could sell new $1,000 par value bonds at a net price of $945. in 15 years. If capital to Zephyr for bonds? The coupon interest rate is 12 percent, and the bonds wo the company is in a 34 percent tax bracket, what is the afte reStep by Step Solution
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