Problem 2. (9 points). You have the following information for Miller Mining Inc. Miller common stock just paid a dividend of ( $ 5 ) per share and sells for ( $ 60 ) per share. The common dividend is expected to grow at a constant rate of 6 percent in the future. Miller preferred shares pay a dividend of ( $ 2.50 ) per share and sell for ( $ 50 ) per share. Miller's debt consists of bonds that have a coupon rate of 5 percent and yield 4 percent. Calculate the cost of equity financing, cost of preferred stock financing, after-tax cost of debt, and weighted average cost of capital for Miller Thing The corporate tax rate is 40 percent.

Problem 2. (9 points). You have the following information for Miller Mining Inc. Miller common stock just paid a dividend of $5 pershare and sells for $60 per share. The common dividend is expected to grow at a constant rate of 6 percen in the future. Miller preferred shares pay a dividend of $2.50 per share and sell for $50 per share. Miller's debt consists of bonds that have a coupon rate of 5 percent and yield 4 percent. Calculate the cost of equity financing, cost of preferred stock financing, after-tax cost of debt, and weighted average cost of capital for Miller The corporate tax rate is 40 percent