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Retained earnings versus new common stock Using the data for a firm shown in the following table, calculate the cost of retained earnings and the
Retained earnings versus new common stock Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using the constant-growth valuation model. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Projected Current market Dividend dividend per price per share growth rate share next year $49.00 7% $3.43 Underpricing Flotation cost per share per share $2.00 $1.75
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