Question
Jiffy CO. expects to pay a dividend of $4.12 per share in one year. The current price of Jiffy common stock is $30.21 per share.
Jiffy CO. expects to pay a dividend of $4.12 per share in one year. The current price of Jiffy common stock is $30.21 per share. FLotation costs are $3.59 per share when Jiffy issues new stoc. What is the cost of internal common equity(retained earnings) if the long term growth in dividends is projected to be 5% indefinitely?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
