FNAN 522 Module 3 Homework - University of Louisiana, Lafayette . Questions & Answers.
A company has a risk free rate of 3% and a risk premium of 6%. Its tax rate is 35%. What is the company's cost of debt? Select one: a. 3.90% b. 2.10% c. 3.15% d. 5.85% A company is thinking of issuing more common stock. Its stock's current market price is $50 a share with an expected dividend annual one year from today of $3 a share. Dividends are expected to grow 5% per year and there are no flotation costs. What is the company cost of new common stock? Select one: a. 11.00% b. 13.65% c. 65% d. 12.58% Your answer is correct.
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- fnan 522 module 3
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lafayette fnan 522 module 3 homework
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