"Common Stock The company's common stock is currently selling for $50 each. The dividend expected to be paid at the end of 2013 is $4. Its dividend payments, which have been about 60% of earnings per share in each one of the last 5 years, are presented in the following table.. The company finances with common stock at 50% To attract buyers, the new common stock must be undervalued by $5 each, in addition, the company must pay $3 per share of flotation costs, and expects dividend payments to remain at 60% of earnings. P0=ksgD1onactions ks=P0D1+g "Common Stock The company's common stock is currently selling for $50 each. The dividend expected to be paid at the end of 2013 is $4. Its dividend payments, which have been about 60% of earnings per share in each one of the last 5 years, are presented in the following table.. The company finances with common stock at 50% To attract buyers, the new common stock must be undervalued by $5 each, in addition, the company must pay $3 per share of flotation costs, and expects dividend payments to remain at 60% of earnings. P0=ksgD1onactions ks=P0D1+g