Question: Problem 1 The CCC Corporation made available the following data as requested: Total interest payments on bonds payable P60,000 Preferred stock dividends 20,000 Common Stock

Problem 1 The CCC Corporation made available the following data as

requested: Total interest payments on bonds payable P60,000 Preferred stock dividends 20,000

Problem 1 The CCC Corporation made available the following data as requested: Total interest payments on bonds payable P60,000 Preferred stock dividends 20,000 Common Stock dividends 24,000 Annual growth on common stock dividend 2% Market Values of: Bonds Payable P400,000 Common Stock 300,000 Preferred Stock 200,000% Retained Earnings 100,000 Company Tax rate 30% Stockholders' Marginal Tax Rate 70% REQUIRED: Calculate the firm's Cost of Capital

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The status rule: We tend to have more confidence in information presented by someone who has a relatively high status and rank in society than by someone who hasnt.

The spatial rule: The closer spatial proximity we have to an event, the more importance we will attach to it.

The visual rule: If we observe an event with our own eyes, we will attach more weight to it than if someone else had described it to us.