Q1. A new common stock issues that paid a $1.81 dividened last year. The firms dividends are expected to grow at 7.6% per year forever. The price of the firms common stock is now $27.07.

 

The price of capital from the common equity is __%   (round to two decimals)

 

 

Q2. A preferred stock paying 10.2% divdened on a $123 per par value. The prefered shares are currently selling for $153.27.

 

 

The cost of the preferred stock is ___%  (round to two decimals)

    • 10 years ago
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      the_common_equity.xlsx