a, After Tax cost of Debt =YTM*(1-Tax Rate) =6%*(1-30%)
=4.20%
b. Cost of Preferred Stock =Preferred Dividend/(Price -Flotation
cost) =1.50/(20-2) =8.33%
c. Cost of retained Earnings doesnot use flotation cost =Dividend
next year/Price +growth =3/60+6% =11.00%
See pages 344 - 356 Alcon Inc's product line has expanded from pharmaceuticals to the surgical...
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