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1.Fast Food Corporation's common stock is currently selling for $60. Last year'sdividend was $5.00 per share. Investors expect dividends to grow at an annual rate
1.Fast Food Corporation's common stock is currently selling for $60. Last year'sdividend was $5.00 per share. Investors expect dividends to grow at an annual rate of8 percent indefinitely. Flotation costs of 3% will be incurred when new stock is sold. a.What is the cost of internal common equity? b.What is the cost of new common equity
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
