Calculate the cost of debt-cost of new common stock

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Reference no: EM13881267

Jury company wants to calculate the component costs in its capital structure. Common stock currently sells for $ 33 And is expected to pay a dividend of $50. Jury's dividend growth rate is 8% and flotation cost is $1.25. Preferred stock sells for $40, pays a dividend $3,00, and carries a flotation cost of $1.10. Jury Company bonds yield 7% in the market. Jury is in the 30% tax bracket. Calculate the cost of debt, cost of new common stock, cost of preferred stock, and cost of retained earnings

Reference no: EM13881267

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Calculate the cost of debt-cost of new common stock : Jury company wants to calculate the component costs in its capital structure. Common stock currently sells for $ 33 And is expected to pay a dividend of $50. Jury's dividend growth rate is 8% and flotation cost is $1.25. Calculate the cost of debt, c..

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