What is weighted average cost of capital

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Reference no: EM132072640

1. Moraine, Inc., has an issue of preferred stock outstanding that pays a $4.75 dividend every year in perpetuity. If this issue currently sells for $98 per share, what is the required return?

2. Ty is financed with 60% equity and 40% debt. The company's cost of equity is 13%, and the cost of debt is 5%. What is the weighted average cost of capital if the tax rate is 34%?

3. Porsha believes that inflation next year will be 5%. If the nominal return on a one year corporate bond is 10% the real return on the bond will be?

Reference no: EM132072640

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