Question
A firm's stock is selling for $77. The next annual dividend is expected to be $4.00. The growth rate is 8%. The flotation cost is
A firm's stock is selling for $77. The next annual dividend is expected to be $4.00. The growth rate is 8%. The flotation cost is $6. What is the cost of retained earnings? (Round your answer to 2 decimal places.)
Multiple Choice
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14.64%
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11.84%
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13.19%
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11.04%
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
