Question
The following financial information is available on the Haverty Company: Current per share market price $47.00 Next expected dividend per share $4.50 Expected long-term growth
The following financial information is available on the Haverty Company:
| Current per share market price | $47.00 |
| Next expected dividend per share | $4.50 |
| Expected long-term growth rate | 6.0% |
Haverty can issue new common stock to net the company $44 per share. Determine the cost of equity raised through selling new stock using the dividend growth model approach.
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Core Concepts of Accounting Information Systems
Authors: Mark G. Simkin, Jacob M. Rose, Carolyn S. Norman
12th edition
1118022300, 978-1118022306
