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question 1 Zobo Co's common stock is selling for $16.80 a share. Last year Zobo paid a dividend of $0.85. Investors are expecting Zobo's dividends
question 1 Zobo Co's common stock is selling for $16.80 a share. Last year Zobo paid a dividend of $0.85. Investors are expecting Zobo's dividends to grow at an annual rate of 5% per year. What is the cost of internal equity?
question 2 Bobo Co's preferred stock is selling for $28 a share. The firm nets $26.60 after issuance costs. The stock pays an annual dividend of $2.50 per share. What is the cost of existing, and new, preferred stock respectively?
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