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Unformatted text preview: 7%. Its tax rate is 35%. What is Laurels effective (after-tax) cost of debt? 6. Dewyco has preferred stock trading at $50 per share. The next preferred divided of $4 is due in one year . What is Dewycos cost of capital for preferred stock? 7. Steady Companys stock has a beta of 0.20. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate of Steady Companys cost of equity?...
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- Spring '11