Compute the cost of common stock

Reference no: EM131959863

Question: Compute the cost of common stock (pick a method) if the following are given. The Dukes Corporation is contemplating issuance of a 9% preferred stock that they expect to sell for $90 per share. While the market price of the common stock is $40 per share and the risk-free is 4%. The firm's beta is 1.2 and the market return is 10%. The flotation cost for the preferred stock will be $6 per share.

Reference no: EM131959863

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