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a business is raising money for a new project. It is looking to raise $48...

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Finance

a business is raising money for a new project. It is looking to raise $48 million via bonds. The planned bond has an 8.8% semi-annual coupon, $1000 par value, and a 17-year to maturity. After the fee paid to the investment bank, the business will receive $975 for each bond.

Part c. Assume the businesss dividend will grow at the fixed rate as last year (last part) in the future, and the current market value of stock is $48. Find the cost of common stock?

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