QUESTION 5 "Continue considering Firm XYZ. Assume that the equity beta for Firm XYZ is...
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Finance
QUESTION 5
"Continue considering Firm XYZ. Assume that the equity beta for Firm XYZ is 1.1. The Yield on 10-year treasuries is 2%, and that the market risk premium for the year is 8%. What would be the cost of equity for Firm XYZ? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"
10 points
QUESTION 6
"Continue considering Firm XYZ. If the dividends for Firm XYZ are the same for common and preferred stock, and the price for common stock is $30. What would be the cost of equity? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"
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