Question
Sun Instruments expects to issue new stock at $36 a share with estimated flotation costs of 8 percent of the market price. The company currently
Sun Instruments expects to issue new stock at $36 a share with estimated flotation costs of 8 percent of the market price. The company currently pays a $1.60 cash dividend and has a 7 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places. Cost of new common stock:
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Cases In Financial Reporting
Authors: Ellen Engel, D. Eric Hirst, Mary Lea McAnally
7th Edition
1934319791, 9781934319796
