Question: ch.10 question 4 please show step by step Ethan Inc.'s next expected dividend is $1.35 per share. The growth rate of its dividends is expected

ch.10 question 4

please show step by step

Ethan Inc.'s next expected dividend is $1.35 per share. The growth rate of its dividends is expected to be 4.5% and its common stock is currently trading at $42.00 per share. The company thinks it can net $39.48 per share after flotation costs if it sells new shares of stock. What is the company's estimated cost of retained eamings, r3 ? 6.85% 7.7196 7.79% 8.019\% 9.25%

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