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0 0 P9-16 (similar to) Question Help Cost of capital Edna Recording Studios, Inc reported earnings available to common stock of 54 800 000 last year From those earnings, the company paid a dividend of 51 23 on each of its 1.000.000 common shares outstanding the capital structure of the company includes 45% debt 20% preferred stock, and 35% common stock it is taxed at a rate of 23% . If the market price of the common stock is $45 and dividends are expected to grow at a rate of 8% per year for the foreseeable future, what is the company's cost of b. It underpricing and flotation costs on new shares of common stock amount to 55 per share, what is the company's cost of new common stock financing The company can issue $1.83 dividend preferred stock for a market price of 534 par share. Flotation costs would amount to $5 per share. What is the cost of 2 d. The company can issue 1,000-per-value, TS coupon, 10-year bonds that can be sold for $1,300 each Flotation costs would amount to $25 per bond. Use the estimation formula to figure the approximate after-tax cost of code financing a ne market price of the common stock is $45 and dividends are expected to grow at a rate of 8% per year for the foreseeable futuro, the company's cost of retained eatring finances > Round to two decimal places) 1 (3/3 isport ork wi .. What is the WACC) study Enter your anwwer in the answer box and then chok Check Answer Clear 5 emand CA

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