What is cost of Equity that will use in estimating WACC

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Problem (1) Continue considering Firm XYZ. If the dividends for Firm XYZ are the same for common and preferred stock, and the price for common stock is $33. What would be the cost of equity? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"

Problem (2) Continue considering Firm XYZ and your previous analysis. If you are to be conservative in your approach, what is the cost of Equity that you will use in estimating the WACC for Firm XYZ? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"

Reference no: EM132620861

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