Question: help solve 11 - The company also has a number of shares outstanding of common stock. The company has been doing well and is expected
11 - The company also has a number of shares outstanding of common stock. The company has been doing well and is expected to pay a dividend of $3.85 next year. Dividends have grown at a constant rate of 5% and the market expects that growth rate to continue. The price of the common stock at yesterday's close was $58.46. Given this information, and using the Dividend Growth Modal, (DGM), what is the cost of common equity? 12 - The capital structure of this company is as follows: $3,586.000 in corporate debt, $1,350,000 in preferred stock and $6,275,000 in common stock. What is the total Capital Structure? Given these numbers, please figure out the weights of debt, preferred stock and common stock. 13 - Now that you have calculated the costs of debt, preferred stock and common stock and found out the weights of the capital structure, please determine the Weighted Average Cost of Capital (WACC) for the company. One hint: remember, you already have figured out the after cost of debt
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