question archive JJ firm issues preferred dividends at an annual rate of $3
JJ firm issues preferred dividends at an annual rate of $3
Subject:FinancePrice: Bought3
JJ firm issues preferred dividends at an annual rate of $3.3. Its current preferred stock price is $23.69. Assume that the equity beta for JJ is 0.75. The Yield on 10-year treasuries is 3.89%, and that the market risk premium for the year is 7%. The company's EPS expected growth is 2%. For this year, the dividends for JJ firm are the same for common and preferred stock; additionally the price for common stock is $33. What is the common cost of equity for JJ Firm using the CDGM method?
