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The market value of common stock of a firm is $400 million. The market value of preferred stock is $60 million. The market value of
The market value of common stock of a firm is $400 million. The market value of preferred stock is $60 million. The market value of debt is $140 million. The yield to maturity of debt is 5.8% and the dividend yield for the preferred stock is 7.2%. The required rate of return for common stock is 12%. The tax rate is zero.
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
