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QUESTION 5 A firm has the following capital components and costs. Component Value Debt 15,782 Preferred Stock 8,343 Common Equity 11,448 After-Tax Cost 9 %

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QUESTION 5 A firm has the following capital components and costs. Component Value Debt 15,782 Preferred Stock 8,343 Common Equity 11,448 After-Tax Cost 9 % 8 % 14 % What is the firm's weighted average cost of capital? % (to two decimal places) QUESTION 6 Rivoli Inchired you as a consultant to help estimate its cost of capital. You have been provided with the following data: Do = $0.90; Po - $24.50, and g - 11.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 14.67% 3.6796 11.8496 15.08% 4,08%

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