Question: Problem 9 show all work such as formulas A common stock priced at $78.56 pays an annual dividend of $2.50 which is expected to growth

Problem 9 show all work such as formulas

A common stock priced at $78.56 pays an annual dividend of $2.50 which is expected to growth indefinitely at 5% annually. What is its component cost of capital if it faces a 2% flotation cost

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