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QUESTION 4 Firm XYZ issues a constant amount of preferred dividends at an annual value of $10. Its current preferred stock price is $100. What
QUESTION 4 "Firm XYZ issues a constant amount of preferred dividends at an annual value of $10. Its current preferred stock price is $100. What is the cost of preferred equity for Firm XYZ? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" QUESTION 5 "Continue considering Firm XYZ. Assume that the equity beta for Firm XYZ is 0.95. The Yield on 10-year treasuries is 2.5%, and that the market risk premium for the year is 6%. What would be the cost of equity for Firm XYZ? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" QUESTION 6 "Continue considering Firm XYZ. If the dividends for Firm XYZ are the same for common and preferred stock, and the price for common stock is $75. What would be the cost of equity? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05
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