Firm’s common equity and preferred equity

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FIRMS COMMON EQUITY AND PREFERRED
EQUITYTUTORIALOUTLET.COM
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Firms common equity and preferred equity

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• i. Calculate the firms cost of equity using the
  capital asset pricing model (CAPM). The formula
  for the CAPM is ri rf ßi (RMkt - rf).ii.
  Assume the risk-free rate (rf) is the current
  rate of 10-year U.S. Treasury Bonds. iii.
  Calculate the market rate (RMkt) by calculating
  the market return on the Standard Poors 500
  for the past 2 calendar years.iv. The beta for
  the firm can be obtained from Yahoo! Finance.

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FIRMS COMMON EQUITY AND PREFERRED
EQUITYTUTORIALOUTLET.COM