Question
The XY firms common stock is currently selling for $78 per share. The firm expects to pay cash dividends of $8 per share next year.
The XY firms common stock is currently selling for $78 per share. The firm expects to pay cash dividends of $8 per share next year. The firms dividends have been growing at an annual rate of 9%, and this is expected to continue into the future. The stock must be underpriced by $4 per share, and flotation costs are expected to amount to $2 per share. The firm can sell an unlimited amount of new common stock under these terms. Calculate Cost of new common stock? Select one: a. 10.26% b. 11.25% c. 22% d. 20.11%
--------------- I do not want a detailed answer. I just want the final answer as soon as possible. Solve quickly I get you thumbs up directly Thank's Abdul-Rahim Taysir
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