Question
A firm is determining its cost of common stock equity. It last paid a dividend of $2.22, the dividends are growing at 4.5%, flotation costs
A firm is determining its cost of common stock equity. It last paid a dividend of $2.22, the dividends are growing at 4.5%, flotation costs are $3 per share, and the firm will net $40 per share upon the sale of the stock. What is the firm's cost of common equity?
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
