Question: Hi, may someone please help with these problems. And if possible, may you also show me how you work it out.--Thank you. 1) You have
Hi, may someone please help with these problems. And if possible, may you also show me how you work it out.--Thank you.
1) You have been provided with the following data: D1 = $1.30; P0 = $42.50; and g = 7.00% (constant). What is the cost of equity from retained earnings based on the constant growth model?
2) You have been provided with the following data: D1 = $1.30; P0 = $42.50; and g = 7.00% (constant). What is the cost of equity from retained earnings based on the constant growth model?
3) You have been provided with the following data: D1 = $1.30; P0 = $42.50; and g = 7.00% (constant). If your company is going to issue new equity, it will incur an additional 6% flotation costs what is the cost of issuing new equity?
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