You know the following about Company G's equity and the stock market (on an annual basis):

RF = 5.54%

RM = 12.54%

O g,м = ,1210

O^2M = .0484

 Company G recently issued preferred for $1,400.00 net of floatation costs. The preferred pays a quarterly dividend of $35.98. Please round to four places in your calculations.

1. Required
2. The annual required return on the common stock is:
3. The annual required return on the preferred, taking floatation costs into account is:

Answer rating: 100% (QA)

To calculate the annual required return on the common stock and the annual required return on the pr... View the full answer