Question
COST OF EQUITY WITH AND WITHOUT FLOTATION Javits & Sonss common stock currently trades at $30.00 a share. It is expected to pay an annual
COST OF EQUITY WITH AND WITHOUT FLOTATION Javits & Sonss common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $3.00 a share at the end of the year , and the constant growth rate is 5% a year.
What is the companys cost of common equity if all of its equity comes from retained earnings?
If the company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock?
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The Economic Indicator Handbook How To Evaluate Economic Trends To Maximize Profits And Minimize Losses
Authors: Richard Yamarone
1st Edition
1118204662, 9781118204665
