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Kinslow Manufacturing company paid a dividend yesterday of $5 per share. The dividend is expected to grow at a constant rate of 8% per year.
Kinslow Manufacturing company paid a dividend yesterday of $5 per share. The dividend is expected to grow at a constant rate of 8% per year. The price of Kinslow's common sock today is $29 per share. If Kinslow decides to to issue new common stock, flotation costs will equal $2.50 per share. Key's marginal tax rate is 35%. Based on the above information, the cost of new common stock is?
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