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Tempo Tughlaq Company's common stock dividends have grown over the past 5-year period from $0.60 per share to $0.89. Assume that Tempo Tughlaq's dividends are
Tempo Tughlaq Company's common stock dividends have
grown over the past 5-year period from $0.60 per share to
$0.89. Assume that Tempo Tughlaq's dividends are expected
to grow at this rate for the foreseeable future. Tempo Tughlaq
's stock is currently selling for $12 per share. New common
stock can be sold to net the company $11 per share.
Determine the costs of
internal
and
external
equity to Tempo
Tughlaq.
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