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PRT Infrastructure Corp. has 80,000 bonds outstanding that are selling at 90% of the par value (Bonds are selling at discount). Bonds with similar characteristics

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PRT Infrastructure Corp. has 80,000 bonds outstanding that are selling at 90% of the par value (Bonds are selling at discount). Bonds with similar characteristics are yielding 10.5%. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $50 a share. The common shareholders anticipate receiving a $2.20 per share dividend next year, based on the fact that they received $2 last year. The capital market analysts predict that dividends will continue to grow at the same rate into the foreseeable future. The firm's tax rate is 28 percent. What would be your estimate of the cost of a common stock? What would be the estimate cost of capital

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