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6 Ellington Electronics wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D) of
6 Ellington Electronics wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D) of $3.10 per share, and the current price of its common stock is $62 per share. The expected growth rate is 9 percent. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) 10 points a. Compute the cost of retained earnings (Ke). % Skipped Cost of retained earnings b. If a $6.0 flotation cost is involved, compute the cost of new common stock (Kn). eBook % Cost of new common stock Print References 6 of 10
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