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The company estimstes that a can iswe debt at a rate of ft=9%, and its tax rate is 25%. It can tasue preferred stock thet
The company estimstes that a can iswe debt at a rate of ft=9%, and its tax rate is 25%. It can tasue preferred stock thet pays a constant dividend of \$5.00 per year at \$53.00 per there. Nso, its common stock currently selis fer $43.00 per share; the next expected dividend, Du is 54.75; and the dividend is expected to grow at a canstant rate of 5 wh per year The target captal structure conests of 75% comenon stock, 15% debt, and 10% preferred thock. a. What is the cost of esch of the capital components? De aek round intermedate calculationt. Round your answers to two dedmal places. Cost of debt: Cest of preferied stock! Cost of retained earnings: h. What is Mamien's WheCr be not round intermedigte calrulstions, hound your answer te two decimal places. Proleit 1 Froject? Preject 3 Pretect a
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