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You have the following information for Custom Mining Inc. Custom Mining common stock just paid a dividend of $6 per share and sells for $63
You have the following information for Custom Mining Inc. Custom Mining common stock just paid a dividend of $6 per share and sells for $63 per share. The common dividend is expected to grow at a constant rate of 5 percent in the future. Custom Mining preferred shares pay a dividend of $2.00 per share and sell for $40 per share. Custom Mining's debt consists of bonds that have a coupon rate of 5 percent and yield to maturity of 4 percent. 5. What is Custom Mining's required return on equity? 6. What is Custom Mining's cost of preferred stock financing? 7. What is Custom Mining's weighted average cost of capital if the tax rate is 40%
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