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keystone corporation will issue new common stock to finance the expansion. The existing common stock just paid a $1.50 dividend, and dividends are expected to
keystone corporation will issue new common stock to finance the expansion. The existing common stock just paid a $1.50 dividend, and dividends are expected to grow at at constant rate 8% indefinitely. the stock sells for $45, and flotation expenses of 5% of the selling price will be incurred on new shares. What is the cost of new common stock be for Keystone Corp.? What is the cost of retained earnings?
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