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please show steps What is the cost of retain earnings using the CAPM model? Use the following information to calculate each component of the weighted

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What is the cost of retain earnings using the CAPM model? Use the following information to calculate each component of the weighted average cist if capital use the following information as appropriate: Marginal corporate tax rate: 25% Bonds with $1,000 face value with a 6% coupon rate with semi-annual payments matures in 10 years now sells for $864.10 Preferred stock dividend $3.50 Preferred stock price $55.00 Current common stock dividend per share $1.00 Price per share of common stock $12.00 Floatation cost to sell new common stock 10% Forecast rate of growth for corporation 4% Risk free interest rate 4% Market rate of return 10% Beta for firm 1.2

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