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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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