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Please help me get the answer. The solution is the most important. Thanks Question 1 What would be the cost of new common stock equity
Please help me get the answer. The solution is the most important. Thanks
Question 1 What would be the cost of new common stock equity for Beedee, Inc. if the firm just paid a dividend of P21.25, the stock price is P275.00, dividends are expected to grow at 8 percent indefinitely, and a flotation cost of 11 percent would be incurred? 10.72% 17.38% 19.35% 16.68% Question 2 A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and target market value proportions: Source of Capital Target Market Proportions After-Tax Cost Long-term debt 40% 6% Preferred stock 12 Common stock 50 15 The firm's tax rate is 30%. 10 The weighted average cost of capital is 11.10 percent 11.00 percent 10.38 percent 32.70 percentStep by Step Solution
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