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Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using
Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using the constant-growth valuation model.
| Current Market price per share | Dividend growth rate | projected dividend per share next year | Underpricing per share | Flotation cost per share |
| $44.00 | 8% | $2.64 | $2.00 | $1.50 |
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
9th Edition
0324656122, 978-0324656121
