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Builtrite's common stock is currently selling for $86 a share and the firm just paid an annual dividend of $3.80 per share. Management believes that
Builtrite's common stock is currently selling for $86 a share and the firm just paid an annual dividend of $3.80 per share. Management believes that dividends and earnings should grow at 7% annually. Based on this, and a marginal tax rate of 34%, what is the cost of common stock (also known as the cost of retained earnings)?
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To calculate the cost of common stock cost of retained earnings we can use the Gordon Growth Model T...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
