Question: you ae analyzing a capital structure. it has the following issues of capital. Tax rate= 10%. Common stock: 35 million shares of class A trading

you ae analyzing a capital structure. it has the following issues of capital. Tax rate= 10%. Common stock: 35 million shares of class A trading at $47 with a beta of 1.3. The current risk free rate is 3.7%. The current maket return on similar stocks is 12.7%. Preferred stock: 5 million shares of trading at $69. $100 face value. Dividend rate of 5%. Bonds: 150,000 bonds- 32 years left trading at 98.5% of $2000 face 7.5% annual coupon. Questions: What is the formula for calculating the cost of common equity? What is the cost of common equity? What is the formula for calculating the cost of preferred stock? What is the cost of preferred stock

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