What is the after-tax cost of debt? Round your answer to two decimal places.   % What is the cost of preferred stock? Round your answer to two decimal places.   % What is the cost of common stock? Assume that the current $0.80 dividend grows by 5 percent during the year. Round your answer to two decimal places.   % What is the firm’s weighted-average cost of capital? Round your answer to two decimal places.   %

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.