Question
A Company's last dividend was $1.35. Its dividend growth rate is expected to be constant at 6.0% forever and the stock price is $40. The
A Company's last dividend was $1.35. Its dividend growth rate is expected to be constant at 6.0% forever and the stock price is $40. The flotation cost on any new stock issue will be 10%. The companys tax rate is 40%. What is cost of retained earnings for this company?
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Inside And Outside Liquidity
Authors: Bengt Holmstroem, Jean Tirole
1st Edition
0262518538, 9780262518536
