A company's common stock has a market value of $67.12 per share and its last dividend was
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A company's common stock has a market value of $67.12 per share and its last dividend was $4.95 per share. The yield to maturity for the company's long-term debt is 10.3% per year. The stock's beta is 1.4 and the expected market return is 11.4% per year. If the company's dividends are expected to grow forever at a constant rate of 6.4% per year and the tax rate is 33%, what is its annual cost of retained earnings financing?
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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