Question: PLEASE ANSWER ALL 3 MULTIPLE CHOICE QUESTIONS XYZ Co. stock sells for $42 and just a paid a dividend of 54. Dividends are expected to

PLEASE ANSWER ALL 3 MULTIPLE CHOICE QUESTIONS

XYZ Co. stock sells for $42 and just a paid a dividend of 54. Dividends are expected to grow at a rate of 4% forever. What is the cost of common equity? (Nearest 0.1 10.9% 13.996 5.7% 9.996 13.5% A share of preferred stock pays an annual dividend of $4.00. What is the required rate of return on the stock if the current market price is $25? 16.00% 18.00% 20.00% 22.00% 24.00% XYZ bonds sell for $900. They have a $1000 par value, 8% coupon rate with semiannual coupons, and 12 years to maturity. What is the pre-tax cost of debt? 4.70% 5.14% 3.97% 6.50% 9.41%

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