Soundsonic incs perpetual preferred stock sells for 3945


Soundsonic Inc.'s perpetual preferred stock sells for $39.45 per share and it pay $7.50 in annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? A.5.00% B.7.62% C.8.03% D.8.45% E.8.88% Q2.Calph Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. you have been provided with the following date rRF=3.25%; RPm=6.45%;and b=1.27.Based on the CAPM approach, what is the cost of common equity from retained earnings? A.8.19% B.9.70% C.10.58% D.11.44% E.13.24% Q3 Assume that you are a consultant to Tintle Inc, and you have been provided with the following date,D1=$0.81;P0=$23.43;and g =4.00%(constant).what is the cost of common equity from retained earning based on the DCF approach? A.3.46% B.4.00% C.4.81% D.4.97% E.7.46%

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Financial Management: Soundsonic incs perpetual preferred stock sells for 3945
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