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The Gordon Company currently pays an annual common stock dividend of $4.00 per share. Its dividend payments have been growing at a steady rate of
The Gordon Company currently pays an annual common stock dividend of $4.00 per share. Its dividend payments have been growing at a steady rate of 6 percent per year, and this rate of growth is expected to continue for the foreseeable future. Gordon's common stock is currently selling for $66.25 per share. The company can sell additional shares of common stock after flotation costs at a net price of $53.00 per share. What is the company's cost of internal equity capital? % What is the company's cost of external equity capital? %
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