Question
The A Company paid a dividend yesterday of 3.75 SAR per share. The dividend is expected to grow at a constant rate of 8% per
The A Company paid a dividend yesterday of 3.75 SAR per share. The dividend is expected to grow at a constant rate of 8% per year. The price of the common stock today is 45 SAR per share. If it decides to issue new common stock, flotation costs will equal 4.00 SAR per share. Its marginal tax rate is 35%. Based on this information, the cost of retained earnings is ________.
| 26.41% | ||
| 20.09% | ||
| 19.63% | ||
| 17.87% |
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International Finance
Authors: Keith Pilbeam
3rd Edition
1403948372, 978-1403948373
