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please help me anwser this i only have one hour to anwser Cannon Corp is considering issuing additional preferted and common shares in ordor to
please help me anwser this i only have one hour to anwser
Cannon Corp is considering issuing additional preferted and common shares in ordor to raise capital for the canstruction of a now warehoise, Their preferred shares currently pay an annual dividend of $8.50 per share, with investors requiring a return of 12 . Their common stock paid a dividend of 5500 per stare last year and it is expected that earnings and dividends will grow by 20% for the next three years before dropping to a constant rate of 10% thereafter. The required rate of return for common shareholders is 15%. Required: Detormine the current price of the company's preferted and common shares. (10 marks) Step by Step Solution
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