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A company expects dividends this year to be $2.20, based upon the fact that $2 were paid last year. The firm expects dividends to grow
A company expects dividends this year to be $2.20, based upon the fact that $2 were paid last year. The firm expects dividends to grow 10% next year and into the foreseeable future. Stock is trading at $50 a share. Flotation costs are expected to be 15%.
please write with details and formulas
Find the cost of retaiend earnings (KCS) and cost of new stock (KNCS)
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