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Question 8 IBM company's financial information is provided below: Current Stock Price: $30.00; Expected Annual Dividend in 1-Year: $1.25 Constant Growth Rate of Earnings: 3.00%;
Question 8 IBM company's financial information is provided below: Current Stock Price: $30.00; Expected Annual Dividend in 1-Year: $1.25 Constant Growth Rate of Earnings: 3.00%; New Equity Flotation Cost: 9.00%. How much is IBMs cost of common equity if all of its equity comes from issuing new stocks? Enter your answer in the following format: 0.1234; Hint: Answer is between 0.0754 and 0.093
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