Jarett Sons' common stock currently trades at $40 00 a share It is expected to pay an annual dividend of $1 50 a share at the end of the year (D 1 $1 50), and the constant growth rate is 5 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 an 11 flotation cost What would be the cost of equity from new stock Do not round intermediate calculations Round your answer to two decimal places Jarett Sons' common stock currently trades at $40 00 a share It is expected to pay an annual dividend of $1 50 a share at the end of the year (D1 $1 50), and the constant growth rate is 5 a year a 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 b If the company issued new stock, it would incur an 11 flotation cost What would be the cost of equity from new stock Do not round intermediate calculations Round your answer to two decimal places Check My Work (3 remaining)

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Jarett & Sons' common stock currently trades at $40.00 a share. It is expected to pay an annual dividend of $1.50 a share at the

Jarett & Sons' common stock currently trades at $40.00 a share. It is expected to pay an annual dividend of $1.50 a share at the end of the year (D₁ = $1.50), and the constant growth rate is 5% 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 an 11% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places. image text in transcribed

Jarett \& Sons' common stock currently trades at $40.00 a share. It is expected to pay an annual dividend of $1.50 a share at the end of the year (D1=$1.50), and the constant growth rate is 5% a year. a. 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. % b. If the company issued new stock, it would incur an 11% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places. % Check My Work (3 remaining)