on 3 Assume the following capital structure for the Morgan Corp. Debt Preferred Stock Common...

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Finance

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on 3 Assume the following capital structure for the Morgan Corp. Debt Preferred Stock Common Equity 35% 15% 50% The following facts are also provided Bond yield to maturity Corporate tax rate Dividends, preferred stock Price, preferred stock Flotation cost, preferred stock Dividends, common stock Price, common stock Growth rate, common stock 9% 35% $8.50 $ 100 $ 2 $1.20 $ 30 & Compute the weighted average cost of capital. Explain how Cost of Capital affect value for the firm

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