Preferred stock be in the weighted average cost of capital

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1. Assume you work for a company that has issued 10000 shares of $100 par 5% preferred. The return of stock of this risk class is 6%. What is the market price of this stock based on its dividend?

2. Assume the stock from problem 6 is included here.

If there were 100,000 shares of $50.00 market value common, what would the weight of the preferred stock be in the weighted average cost of capital?

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Reference no: EM131525647

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