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Use this information for questions 1 5 , 1 6 , and 1 7 : A firm has a capital structure of 3 0 %
Use this information for questions and :
A firm has a capital structure of debt, common equity, and preferred equity.
Debt: The bonds pay a semiannual coupon, have a $ par value, and have a maturity length of years. The market value of the bonds is
$
Common: The firm has common stock with a beta of
Preferred: The firm has preferred stock.
Market: The risk free rate on Treasury bonds is while the expected return on the market is The tax rate facing the firm is
What is the firm's cost of debt?
Round to two decimals
Enter your answer in percent and omit the symbol. For example, if your answer is enter
QUESTION
What is the firm's cost of equity?
Round to two decimals
Enter your answer in percent and omit the symbol. For example, if your answer is enter
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