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Canyon's common stock which is currently selling for $50 per share, has a beta coefficient equal to 0.75. Canyon has paid a dividend equal to
Canyon's common stock which is currently selling for $50 per share, has a beta coefficient equal to 0.75. Canyon has paid a dividend equal to $6 per share since it has been in business and expectations are the same dividend will be paid forever. Canyon's investment banker charges 7 percent when new common stock is issued. what is canyon's a. cost of retained earnings b. cost of new common equity?
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