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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 |
| $31.00 | 6% | $0.93 | $1.00 | $1.75 |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
2nd Edition
0073530638, 9780073530635
