Move into california can be financed through the sale

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Q. The industry's investment bankers state which their move into California can be financed through the sale of preferred stock with a 9% dividend rate also also by issuing shares of common stock which would pay a $3 per share dividend. The industry has a beta of 1.25, investors' need a 13% return on the overall stock market also the risk-free rate is 4%. The organization has $200,000 in outstanding senior loans already which pays 6% interest also decides to issue $100,000 in preferred shares also $200,000 in common stock in order to finance its growth.

Reference no: EM1377330

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