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The Nyango Industries has the following capital structure: Assets 131.84 Thousands Debt Preferred Common 65.74 Thousands 10.11 Thousands 55.99 Thousands The company's 40% tax bracket
The Nyango Industries has the following capital structure: Assets 131.84 Thousands Debt Preferred Common 65.74 Thousands 10.11 Thousands 55.99 Thousands The company's 40% tax bracket and the interest on debt is 5.91 percent annually. Their preferred stock is currently selling at $150.05 and pays out dividends of $5.37 per share. The Common Stock is selling for $675.22 per share paying dividends of $3.43 per share with an annual growth rate of 3 percent. A. What is the cost of the common stock? B. What is the after-tax cost of debt? C. What is the cost of preferred stock? D. What is the firm's WACC? E. Which of the three capital structures has the lowest cost
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