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The firm's preferred stock pays an annual dividend of $5.80, and the stock sells for $80. Flotation costs of preferred stock was 12% of the
The firm's preferred stock pays an annual dividend of $5.80, and the stock sells for $80. Flotation costs of preferred stock
was 12% of the stock value.
The firm's common stock is selling for $78. The dividend paid was $2.80. A 6% growth rate in dividends is expected for the
common stock. If the firm issue new stocks a 10% of the selling price will be charged as selling costs.
Bond's yield to maturity is 10% The firm marginal tax rate is 30%
Calculate the Marginal Average Cost of Capital if new common stocks are issued and the optimal capital structure is 50%
debt, 28% Preferred Stocks and 22% Common equity
PRESENT YOUR ANSWER IN PERCENT ROUNDED WITH ZERO DECIMAL PLACES
DON'T MAKL INTERMEDIATE CALCULATIONS. DON'T WRITE THE PERCENTAGE SIGN
EX 17% WRITE JUST 17
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