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Murray Motor Company wants you to calculate its cost of common stock. During the next 12 Months, the company expects to pay dividends (D_1) of
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 Months, the company expects to pay dividends (D_1) of $1.90 per share, and the current price of its common stock is $38 per share. The expected growth rate is 10 percent. Compute the cost of retained earnings (K_e). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) cost of retained earning if a $2 flotation cost is involved, compute the cost of new common stock (k^n). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) cost of new common stock eBook & Resources eBook cost of Common Equity
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