Question
AML Foods expects to issue new stock at $45 a share with estimated flotation costs of 8 percent of the market price. The company currently
AML Foods expects to issue new stock at $45 a share with estimated flotation costs 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 costs of retained earnings and new common stock?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
