exams.eap.gr Marked out of 1.00 Flag question Question 16 Not yet answered The current price of company's preferred stock on the stock market is €3.6. The preference share has a 20% dividend yield...

exams.eap.gr Marked out of 1.00 Flag question Question 16 Not yet answered The current price of company's preferred stock on the stock market is €3.6. The preference share has a 20% dividend yield upon a par value of €1. In case of issuance of new preferred share capital, the issue and disposal costs will be €0.30 per share. The current market price of company's common stock on the stock market is €3.9. The company's most recent dividend (D) was €0.24 per share and dividends are expected to grow at a steady 2% annual rate for the foreseeable future. The beta coefficient of company is 1.6, the long-term government bond offers investors a yield of 4%, and the market risk premium is 2%. What is the cost of company's common equity capital using the Capital Asset Pricing (CAPM) model? Select one: a. 7.2% O b.6.5% oc8.196 d. 6.9% o e. 7.9% Question 17 Not yet answered Marked out of 1.00 p Flag question What is the cost of company's preferred share capital (two decimals, no rounding)? Select one: a. 7.65% hoexams.eapg Marked out of 1.00 Flag question Question 17 Not yet answered What is the cost of company's preferred share capital (two decimals, no rounding? Select one a. 7.65% b. 6 879 c6.06% d. 8.82% e. 8.231 Question 18 Not yet answered Marked out of 1.00 p Flag question What is the cost of company's common equity capital using the Dividend Discount Model (DDM) model (two decimals, no rounding): Select one 2.7.95% b. 5,019 d. 8.279 e. 3.98% Next page Previous page N W 20