Jarett & Sons' common stock currently trades at $24.00 a share. It is expected to pay an
Fantastic news! We've Found the answer you've been seeking!
Question:
Jarett & Sons' common stock currently trades at $24.00 a share. It is expected to pay an annual dividend of $1.00 a share at the end of the year (D1 = $1.00), and the constant growth rate is 6% a year. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermediate calculations. Round your answer to two decimal places.
_____%
If the company issued new stock, it would incur a 13% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places.
_____ %
Posted Date: