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of 10.4%. the stock for $59.45 in the market. What is the cost of preferred stock
for Kyle?
P 11-9
Stan is expanding his business and will sell common stock for the needed funds.
If the current risk-free rate is 4.3% and the expected market rate is 10.8%, what
is the cost of equity for Stan if the beta of the stock is
a) What is the cost of equity for Stan if the beta of the stock is
0.62?
b) What is the cost of equity for Stan if the beta of the stock is
0.86?
c) What is the cost of equity for Stan if the beta of the stock is
1.09?
d) What is the cost of equity for Stan if the beta of the stock is
1.35
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FIN 419 Week 2 DQ 1
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What are the three key inputs to the valuation model?
How would you determine the valuation of an asset?
How would the intrinsic value of assets differ from the market value? Explain.
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