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  3. consider this data: bond coupon rate (pre-tax): 8.

Consider this data: Bond coupon rate (pre-tax): 8.60% Last year's Common Dividend: $1.60 Dividend -...

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Accounting

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Consider this data: Bond coupon rate (pre-tax): 8.60% Last year's Common Dividend: $1.60 Dividend - Preferred: 3.50 Market Price - Common $36.00 Market Price - Preferred $53.00 Most recent overall Market Return: 7% Flotation Cost per share of preferred: $8.00 Compound growth rate of common dividends: 5% Most recently published risk free rate: 2.5% Corporate Tax Rate: 35% Beta: 1.7 Calculate the Weighted after-tax Cost of Retained Earnings using the Capital Asset Pricing Model. 0.1015 .0290 0967 O 0312

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