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Using excel graph the Security Market Line and risk-free rate using the information from info below: Given the following, decide if debt, preferred stock, or
Using excel graph the Security Market Line and risk-free rate using the information from info below:
Given the following, decide if debt, preferred stock, or common stock should be used.
Cost of Debt=10%
Tax Rate=35%
Dividend (both preferred and Common)=2
Price of preferred stock=50
Cost of selling preferred stock=$2
Risk free rate=5%
Beta=1.15
Market Return=9%
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