What is the weight of preferred stock

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Reference no: EM131962723

1. If the market value of debt is $197,440, market value of preferred stock is $71,291, and market value of common equity is 432,455, what is the weight of preferred stock?

2. ABC Industries will pay a dividend of $2 next year on their common stock. The company predicts that the dividend will increase by 5 percent each year indefinitely. What is the dividend yield if the stock is selling for $34 a share??

Reference no: EM131962723

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