Question
The Following information pertains to the common equity of Funtastic Furniture Company: Current Selling Price $68 Constant Growth Rate 8% Most recent paid dividend $3.50
The Following information pertains to the common equity of Funtastic Furniture Company:
Current Selling Price $68
Constant Growth Rate 8%
Most recent paid dividend $3.50
Flotation Costs 10%
Marginal Tax Rate 40%
A. What is the company's cost of retained earning?
B. What is the company's cost of new common stock?
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
