What is cost of common equity

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ABC Co. has $100 par value preferred stock that sells for $108 and stated dividend of 5.5% of par value. What is the cost of preferred stock?

ABC bonds have a 7% coupon rate paid quarterly. The par value is $1,000 and the bonds mature in 18 years. If the bonds currently sell for $640, what is the pre-tax cost of debt?

XYZ Co. stock sells for $42 and just a paid a dividend of $3.50. Dividends are expected to grow at a rate of 4% forever. What is the cost of common equity?

Reference no: EM131859471

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What is cost of common equity : XYZ Co. stock sells for $42 and just a paid a dividend of $3.50. Dividends are expected to grow at a rate of 4% forever. What is the cost of common equity?

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