Question
Twister Corporation is expected to pay a dividend of $7 per share one year from now on its common stock, which has a current market
Twister Corporation is expected to pay a dividend of $7 per share one year from now on its common stock, which has a current market price of $143. Twister's dividends are expected to grow at 13%.
a. Calculate the cost of the company's retained earnings.
b. If the flotation cost per share of new common stock is $4, calculate the cost of issuing new common stock.
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
