Cost of common stock equity

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• Cost of capital

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• Cost of common equity explained in this solution

  Wacc= Weightage of Debt *Cost of debt+Weightage of Equity*Cost of equity =40%*7.2%+60%*16.51% =12.78%= Answer Response provides the steps to compute the cost of common equity

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• CAPM, DCF, cost of preferred stock and new common stock

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