Determine what would estimate to required rate of return

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Question 1: What would you estimate to be the required rate of return for equity investors if a stock sells for Br. 40 and will pay a Br. 4.40 dividend that is expected to grow at a constant rate of 5%?

Question 2: What is the WACC for a firm using 55% equity with a required return of 15%, 35% debt with a required return of 8%, 10% preferred stock with a required return of 10%, and a tax rate of 35%?

Reference no: EM132574667

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