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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 (D1) of
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $3.20 per share, and the current price of its common stock is $66 per share. The expected growth rate is 10 percent. The computed cost of retained earnings is 14.85% If a $5 flotation cost is involved, compute the cost of new common stock (Kn)
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