What is the common cost of equity for jj firm

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JJ firm issues preferred dividends at an annual rate of $2.7. Its current preferred stock price is $26.67. Assume that the equity beta for JJ is 0.54. The Yield on 10-year treasuries is 2.62%, and that the market risk premium for the year is 8%. The company's EPS expected growth is 2%. For this year, the dividends for JJ firm are the same for common and preferred stock; additionally the price for common stock is $32. What is the common cost of equity for JJ Firm using the CDGM method?

Reference no: EM132643715

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