What would be the cost of capital

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1.A 20-year corporate bond of $2000 is issued at 8 ½% coupon rate and is sold at 2 ¾% discount with a flotation cost of 1 ¾%. What would be the cost of capital?

2. If the price of a certain stock is $56.00 with a potential annual growth rate of 5 ¾% what would be the cost of equity capital if the DPS in this firm is $9.80?

Reference no: EM131287683

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