Question: 1 excelor stock is expected to pay 280 per share...
Excelor stock is expected to pay $2.80 per share as its next annual dividend. The firm has a policy of increasing the dividend by 10.0 percent annually. The stock has a market price of $13.61 and a beta of 2.6. The market risk premium is 8.54 percent and the risk-free rate is 4.80 percent. What is the cost of equity?
|The 13.50 percent preferred stock of Ajax Unlimited is selling for $93.30 a share. What is the cost of preferred stock if the risk-free rate is 4.45 percent?|