Question
In early 2020, Western Asset Management Company (WAMC) issued new common stock at a market price of $25. Dividends last year were $1.5 and are
In early 2020, Western Asset Management Company (WAMC) issued new common stock at a market price of $25. Dividends last year were $1.5 and are expected to grow at an annual rate of 3 percent forever. Floatation costs will be 3 percent of market price .What is WAMCs cost of equity for the new issue? (System will not accept % sign, please write answer upto four decimal places)
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Airline Finance
Authors: Peter S. Morrell
4th Edition
1351959743, 978-1351959742
