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Jiffy Co. expects to pay a dividend of $3.17 per share in one year. The current price of Jiffy common stock is $31.73 per share.
Jiffy Co. expects to pay a dividend of $3.17 per share in one year. The current price of Jiffy common stock is $31.73 per share. Flotation costs are $4.26 per share when Jiffy issues new stock. What is the cost of internal common stock equity (retained earnings) if the long-term growth in dividends is projected to be 6 percent indefinitely. Submit your answer as a percentage and round to two decimal places.
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