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Kellog's Kellogg s common stock is trading at $ 4 5 . 5 7 , and its dividends are expected to grow at a constant
Kellog's
Kelloggs common stock is trading at $ and its dividends are expected to grow at a constant rate of The company paid a dividend last year of $
If the company issues stock, they will have to pay a floatation cost per share equal to of selling price.
Calculate the expected dividend in current year.
$
Cost of existing common stock k cs is
The floatation cost is $
Cost of common stock for new issuance is
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