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To estimate the cost of capital of Supreme Electric Autos Inc. ( NYSE: SEA ) , you collected the following information. SEAs tax rate is
To estimate the cost of capital of Supreme Electric Autos Inc. NYSE: SEA you collected the following information. SEAs tax rate is SEA paid a dividend of $ per share last year D and its stock currently sells at a price of $ per share. You expect SEAs earnings and dividends to grow at a constant rate of in the future. Tenyear Treasury bonds yield the market risk premium is and SEAs beta is New debt could be sold at par with a coupon rate of The new debt has a face value of $ and will mature in years. Interest is paid semiannually. Flotation costs are negligible and can be ignored in the cost of debt estimation. New preferred stock could be sold to the public at a price of $ per share, with a dividend of $ The flotation cost for new preferred stock issuance is $ per share. New common equity can be raised either by retaining earnings or by issuing new common stock. The flotation cost for new common stock issuance is What is SEAs aftertax cost of debt? What is SEA's cost of preferred stock considering flotation costs? What is SEA's cost of internal equity using the capital asset pricing model CAPM approach? What is SEA's cost of internal equity using the discounted cash flow DCF approach ignoring flotation costs? What is SEA's cost of internal equity by the BondYieldPlusRiskPremium method using the judgmental risk premium of What is SEA's cost of external equity using the discounted cash flow DCF approach considering flotation costs?
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