1 Sutter Corporation's common stock is selling for $16.80 a share. Flotation costs will be 5% of the market price. Last year Sutter paid a dividend of $.80. Investors are expecting Sutter's dividends to grow at an annual rate of 5% per year. What is the cost of the common stock? DO 1 2 3 g 4 D1 5 Market price 6 Flotation rate 7 Flotation costs 8 Net proceeds 9 kcs= 10 11 1. The common stock for El Viss Company currently sells for $20 per share. The firm just paid a dividend of $1.50. Dividends per share are anticipated to grow at 4.89%. Flotation costs for new shares will be 6% of the selling price. Calculate the cost of the common stock. 12 DO 13 R 14 D1 15 Market price 16 Flotation rate 17 Flotation costs 18 Net proceeds 19 kcs= 20 21