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please need answer in 10 mins now. Callahan's common stock currently sells for $52 per share. Its last dividend was $3.80 and is expected to
please need answer in 10 mins now.
Callahan's common stock currently sells for $52 per share. Its last dividend was $3.80 and is expected to grow at a constant rate of 7%. If the firm's beta is 1.25, the risk-free rate is 5% and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? What is the firm's cost of common equity using the DCF approach? 15.50%: 14.65% O 16.25%: 14.82% 16.25%: 14.31% O 15.00%: 14.82% 15.00%: 14.31% Holmes' outstanding bonds have an 8.5% annual coupon payment and will mature in 10 years. The bonds are currently selling for $957.50 If the company can issue new bonds at par with similar YTM, what is Holmes' before-tax cost of debt? If Holmes' marginal tax rate is 25%, what is Holmes' after- tax cost of debt? 9.45%; 7.09% O 10.05%: 7.54% 08.84%: 6.63% 8.50%: 6.38% 09.17%: 6.88%Step by Step Solution
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