gee Inc. is planning on offering a 1000 par value, 20 year, 8% coupon bond with an

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gee Inc. is planning on offering a 1000 par value, 20 year, 8% coupon bond with an expected selling price of 1025. flotation costs would be $2 a share. Common stock. currently the stock is selling for $62 a share and has a paid 6.82 dividend. dividends are expected to grow 13%. flotation costs would be 3.75 a share and gee has 350,000 in available retained earnings. assume 25% tax bracket . their after tax cost of preferred stock is

Posted Date: May 18, 2024 11:03 PM

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