Gregg Company expects to earn $4 per share this year with an expected dividend payout ratio of

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Gregg Company expects to earn $4 per share this year with an expected dividend payout ratio of 43%. Future income and dividends are expected to grow at a constant rate of 5%, and its common stock currently sells for $83 per share. New stock can be issued with a flotation cost of 6%.

What would be the cost of equity (in percentage terms, rounded to two decimal places, e.g., 12.34) from new common stock?

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Sep 21, 2023 08:08 AM

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Gregg Company expects to earn $4 per share this year with an expected dividend payout ratio of

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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