Question
AML Foods expects a new stock at $45 a share with a estimated flotation cost of 8 percent of the market price. The company currently
AML Foods expects a new stock at $45 a share with a estimated flotation cost of 8 percent of the market price. The company currently pays an annual dividend of $3.10 and has a 6 percent growth rate.
What are the cost of retained earnings and new common stock?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077647094
