QUESTION 6 Pt 1 De sol Find the aftertax cost of preferred stock for the following tim 6 years ago, Niko Corporation issued bonds that originally had a maturity of 20 years. These bonds were $1,000 par value bonds that were issued with a 7% coupon rate. These bonds are currently selling for $1,100 Niko Corporation also has issued common stock in the past and has an estimated beta of 1.3. The stock has historically averaged a retum of 12% and is expected to have a return of 10% this year. The stock just paid a dividend of $5 and is currently selling for $80. The firm expects common dividends to grow by 5% constantly forever The firm additionally has preferred stock outstanding that was issued with a stated dividend of $11. Currently, the preferred stock is trading for $130. Niko Corporation commonly pays a tax rate of 20%. The firm is expecting to finance with 40% debt, 50% common equity, and the remainder as preferred stock. This year, the S&P 500 is producing an average return of 12% while Treasury bonds are average 2% QUESTION 7 in12 3 You just invested $100 total in two separate stocks, Ford and Target You bought from at its current maandahan lang at its current marico. If you expect Code and Tapettahvereto. Whatethepetedetalhe portfolio? (6) Ford Target 10 Shares Mkts 17 returns Wf100*7-700 -> 700/1700=0.4118 W = 100*201,000 -> 1000/1700+0.5882 700+1000-1700 QUESTIONS 4118/-04)*5882/17%)= - 0116*100=1 7 10 Find the average quarterly return for the investment below Quarter End Return Mar 2018 89 June 2013 -7% R08 (-07)+.06.08-0.15 Sept 2018 6 15/4=0.0375*100= 3.75 Dec 2018 8% R-+.+ R2 + R3+...+Rr) 2 points Save A