Kellogg's common stock is trading at $45.57, and its dividends are expected to grow at a constant
Question:
Kellogg's common stock is trading at $45.57, and its dividends are expected to grow at a constant rate of 6%. The company paid a dividend last year of $2.27.
If the company issues stock, they will have to pay a floatation cost per share equal to 5% of selling price.
a) Calculate the expected dividend in current year.
Ipos Berhad common stock is currently selling for RM4.56 each. Previously, the company paid dividend of RM0.23, the constant growth rate is 5%. Determine the cost of the common stock.
3) Stan is expanding his business and will sell common stock for the needed funds. If the current risk-free rate is 4% and the expected market return is 12%, what is the cost of equity for Stan ?
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt