Alsup Manufacturing stock is selling for $28 per share. The firm's last dividend was $4 and...
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Alsup Manufacturing stock is selling for $28 per share. The firm's last dividend was $4 and is expected to grow at a 5% rate constantly. a) What is the firm's cost of equity? b) Assuming a 10% floatation cost, what is the firm's cost of new common stock? Alsup Manufacturing stock is selling for $28 per share. The firm's last dividend was $4 and is expected to grow at a 5% rate constantly. a) What is the firm's cost of equity? b) Assuming a 10% floatation cost, what is the firm's cost of new common stock?
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Answer rating: 100% (QA)
a To calculate the firms cost of equity we can use the Gordon Growth Mode... View the full answer
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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