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10-4 ommon stock currently f$1.00 a share at the end COST OF EQUITY WITH AND WITHOUT FLOTATION Jarett & Sons's common stock e. trades at

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10-4 ommon stock currently f$1.00 a share at the end COST OF EQUITY WITH AND WITHOUT FLOTATION Jarett & Sons's common stock e. trades at $30.00 a share. It is expected to pay an annual dividend of $1.00 a share of the year (D = $1.00), and the constant growth rate is 4% a year. a. What is the company's cost of common equity if all of its equity comes from retail earnings? b. If the company issued new stock, it would incur a 10% flotation cost. What we the cost of equity from new stock

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