what is the cost of new common stock based on DCF aporoach?

what is the company's cost of retained earnings based on CAPM approach?

what is viduka's WACC, If the fifth has insufficient retained earnings to fund the equity portion of its capital budgeting?

The following information applies to the next 4 questions. Your answer should be in % and keep 2 digits after the decimal point,e.fr Viduka is a constant growth firm with a dividend growth rate of 8%. It just paid out a dividend of $2.00 per share. Its common stock currently sells for $27.00 ashare with a beta of 1.2. A floatation cost of 10% would be required to issue new common stock. The company's preferred stock pays a fixed annual dividend of $2.00 a share. The preferred stock currently sells for $25 a share. To raise new capital, the company can issue a 20-year, 8.5% annual coupon bond that sells for $945. Viduka's marginal tax rate is 40%. Its target capital structure consists of 40% debt, 40% common equity, and 20% preferred stock. Currently, the risk-free rate is 6% and the market risk premium is 5%. 1. What is the company's cost of debt