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Ellington Electronics wants youdo calqulate its cost of common stock. During the next 12 months, the company expects to pay dividends (02) of $180 per
Ellington Electronics wants youdo calqulate its cost of common stock. During the next 12 months, the company expects to pay dividends (02) of $180 per share are the current price of its common stock is $36 per share. The expected growth rate is 9 percent. (Do not round Intermediate calculations. Round the final answers to 2 decimal places.) a. Compute the cost of retained earnings (el Cost of retained earnings % b. If a $3.0 flotation cost is involved, compute the cost of new common stock (kn) Cost of new common stock %
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