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Please help, Thanks a lot! A firm's capital structure for its common stock. preferred stock and debt (bond) is 20%,40% and 40% respectively. The firm's
Please help, Thanks a lot!
A firm's capital structure for its common stock. preferred stock and debt (bond) is 20%,40% and 40% respectively. The firm's beta is 91 . The risk-free rate is 476% and the expected retum on the market is 8.30%. The firm recently paid a $4.32 preferred stock dividend per share while its price is $95 per share. The firm's 4.25% coupon bond is 4 . trades at par and matures in 25 years. The firm's tax rate is 21%. What is the Cost of the Common Stock? Multiple Choice 123% 798\% 830% 3220xStep by Step Solution
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