Calculate the cost of new common equity financing
|Question 5||1 / 1 point|
Calculate the cost of new common equity financing of stock R using Gordon Model
Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)
|Last Year Dividend||Growth Rate of Dividends||Selling Price of Stock||Floatation Costs||Cost of Common Equity|
|Yield to Maturity of bond, annually|
|Question 6||1 / 1 point|
What is the yield to maturity of a 29-year bond that pays a coupon rate of 12.61 percent per year, has a $1,000 par value, and is currently priced at $1,417? Assume annual coupon payments.
Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box).
You should use Excel or financial calculator.
|Value of preferred stock, expected rate of return on preferred stock, Required rate of return using CAPM|
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