Question
IBM paid a dividend yesterday of $3.50 per share (D0 = $3.50). The dividend is expected to grow at a constant rate of 7% per
IBM paid a dividend yesterday of $3.50 per share (D0 = $3.50). The dividend is expected to grow at a constant rate of 7% per year. The price of IBM stock today is $33 per share. If IBM decides to issue new common stock, flotation costs will equal $1.75 per share. Based on the above information, the cost of new common stock is _____.
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Financial Dimensions Of Marketing Decisions
Authors: David W. Stewart
1st Edition
3030155641,303015565X
