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USWAG Company is preparing to issue common stock. The company is attempting to estimate the cost of common stock. The company paid dividend of P5.25.
USWAG Company is preparing to issue common stock. The company is attempting to estimate the cost of common stock. The company paid dividend of P5.25. The current market price reflects a 15% expected annual return on investors. Dividends are expected to grow at a constant rate of 10% per year. Flotation costs on the new issue will be P3.75 per share. What is the cost of new common stock?
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To calculate the cost of new common stock we can use the Dividend Growth Model also known as the Gor...
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
