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Kinslow Manufacturing Company paid a dividend yesterday of $2.50 per share. The dividend is expected to grow at a constant rate of 5% per year.
- Kinslow Manufacturing Company paid a dividend yesterday of $2.50 per share. The dividend is expected to grow at a constant rate of 5% per year. The price of Kinslow's common stock today is $25 per share. If Kinslow decides to issue new common stock, flotation costs will equal $2.00 per share. Based on the above information,
- Calculate the cost of retained earnings.
- Calculate the cost of new common stock.
- Calculate the cost of retained earnings.
- Calculate the cost of new common stock.
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