Question: ch.10 queation 9 please explain step by step Exra Inc's next expected dividend is $2.40 per share. The growth rate of its dividends is expected

ch.10 queation 9

please explain step by step ch.10 queation 9 please explain step by step Exra Inc's next expected

Exra Inc's next expected dividend is $2.40 per share. The growth rate of its dividends is expected to be 3.5% and its common stock is currently trading at $56.00 per share. The company thinks it can net $53.20 per share after flotation costs if it sells new shares of stock What is the compary's cost of new common stock, re? 7.064 7.92% 8.01% 9.51% 9.87%

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