Question
AML Foods expects to issue new stock at $45 per share with estimated flotation cost of 8 percent of the market price. The company currently
AML Foods expects to issue new stock at $45 per share with estimated flotation cost of 8 percent of the market price. The company currently pays an annual dividend of $3.10 and has a 6% growth rate. What are the cost of retained earnings and new common stock?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
