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1.Clarke Equipment currently pays a common stock dividend of $3.50 per share. The common stock price is $60. Analysts have forecast that earnings and dividends
1.Clarke Equipment currently pays a common stock dividend of $3.50 per share. The common stock price is $60. Analysts have forecast that earnings and dividends will grow at an average annual rate of 6.8 percent for the foreseeable future.
a.What is the marginal cost of retained earnings?
b.What is the marginal cost of new equity if the issuance costs per share are $3?
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