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Conner Corporation has a common stock price of $35 per share today. The last dividend per share was $3.5 (D0 = $3.5). The long-run growth
Conner Corporation has a common stock price of $35 per share today. The last dividend per share was $3.5 (D0 = $3.5). The long-run growth rate for the company is a constant 8%. If the company issues the new common stock, the net price received by the company is $32.9 per share. What are the company's dividend yield (DY), capital gains yield (CGY), and the percentage flotation cost required to sell the new common stock (F)? a DY = 10.8%; CGY = 8%; F = 9% b DY = 8%; CGY = 10%; F = 6% c DY = 10.8%; CGY = 8%; F = 6% d DY = 10%; CGY = 6%; F = 8%
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