Question
Here information about the common equity of Funtastic Furniture Company is as follows: Current retail price - $68.00 Constant growth rate - 8.0 % Most
Here information about the common equity of Funtastic Furniture Company is as follows:
Current retail price - $68.00
Constant growth rate - 8.0 %
Most recently paid dividend, D0 - $ 3.50
Flotation costs - 10.0%
marginal tax rate - 40.0 %
a. What is Funtastic's cost of retained earnings? PLEASE SHOW WORKING
b. What is Funtastic's cost of new common stock? PLEASE SHOW WORKING
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
