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In order to meet their capital needs for next year a firm will need to sell some additional shares of their Class A Common Stock.
In order to meet their capital needs for next year a firm will need to sell some additional shares of their Class A Common Stock. Flotation costs are estimated to be $2.75 per share. Class A shares currently trade at $70.00 and most recently paid a dividend of $7.00 per share. The firm expects to grow at a constant 5.00% for the foreseeable future. Calculate the firm's cost of common equity from new shares. Select one: O a. 15.93% O b. 15.50% O c. 15.00% O d. 15.41%
In order to meet their capital needs for next year a firm will need to sell some additional shares of their Class A Common Stock. Flotation costs are estimated to be $2.75 per share. Class A shares currently trade at $70.00 and most recently paid a dividend of $7.00 per share. The firm expects to grow at a constant 5.00% for the foreseeable future. Calculate the firm's cost of common equity from new shares. Select one: O a. 15.93% O b. 15.50% O c. 15.00% O d. 15.41%
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