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The ABC's Co. Stock is selling for $52. Its last dividend was $4.50 and the firm is expected to grow at 7% indefinitely. Floatation costs
The ABC's Co. Stock is selling for $52. Its last dividend was $4.50 and the firm is expected to grow at 7% indefinitely. Floatation costs associated with the sale of common stock are 10% of the proceeds raised. Estimate a. ABC's cost of equity (from the sale new stock)? b. ABC's cost of equity (from retained earnings)
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