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considered to be optimal. Assume that there is no short-term debt. expected constant growth rate of 8%. (The next expected dividend is $1.20, so $1.20/$30=4%.)
considered to be optimal. Assume that there is no short-term debt. expected constant growth rate of 8%. (The next expected dividend is $1.20, so $1.20/$30=4%.) The marginal corporate tax rate is 30%. Open spreadsheet answer to the nearest dollar. Do not round intermediate calculations. $ intermediate calculations. % I. rS will decrease and the WACC will increase due to the flotation costs of new equity. II. rS and the WACC will not be affected by flotation costs of new equity. III. rS and the WACC will increase due to the flotation costs of new equity. IV. rs and the WACC will decrease due to the flotation costs of new equity. V. rS will increase and the WACC will decrease due to the flotation costs of new equity
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