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?(Cost of equity?) The common stock for the Bestsold Corporation sells for ?$58. If a new issue is? sold, the flotation costs are estimated to
?(Cost of equity?) The common stock for the Bestsold Corporation sells for ?$58. If a new issue is? sold, the flotation costs are estimated to be 11 percent. The company pays 50 percent of its earnings in? dividends, and a ?$3.00 dividend was recently paid. Earnings per share 5 years ago were ?$4.00. Earnings are expected to continue to grow at the same annual rate in the future as during the past 5 years. The? firm's marginal tax rate is 34 percent. ?What is the internal common equity and ?the external common equity?
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