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please show work 3. (20 Points) Jury Company wants to calculate the component costs in its capital structure. Common stock currently sells for $27, and
please show work
3. (20 Points) Jury Company wants to calculate the component costs in its capital structure. Common stock currently sells for $27, and is expected to pay a dividend of 8.50. Jury's dividend growth rate is 8%, and flotation cost is $1.25. Preferred stock sells for $46, pays a dividend of $5.00, and carries a flotation cost of $1.10. Jury Company bonds yield 9% in the market. Jury is in the 34% tax bracket. Calculate the following: 1.) cost of debt 2.) cost of common stock 3.) cost of new common stock 4.) cost of preferred stock Step by Step Solution
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