Question: CI OD Questions Al-A2 are based on the information that follows. To 9% and rps 15% are the capital cost components of debt (pre-tax) and

CI OD Questions Al-A2 are based on the information that follows. To 9% and rps 15% are the capital cost components of debt (pre-tax) and preferred stock. The firm's capital structure is comprised of Debt - $700, Preferred Stock-$300 and Common Equity-$1,000. WACC is 9.64%. The corporate tax rate is 40%. A1. What is the cost of common equity? (a) 12.00% (b) 10.12% (c) 10.98% (d) 11.00% (e) 13.00% a Med made easy Wind

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