Question: Q Search this Ch 10: End-of-Chapter Problems - The Cost of Capital Back to Assignment Attempts: Keep the Highest: 2 2. Problem 10.04 (Cost of

Q Search this Ch 10: End-of-Chapter Problems - The Cost of Capital Back to Assignment Attempts: Keep the Highest: 2 2. Problem 10.04 (Cost of Equity with and without Flotation) eBook Problem Walk-Through Jarett & Sons's common stock currently trades at $26.00 a share. It is expected to pay an annual dividend of $1.75 a share at the end of the year (D - $1.75), and the constant growth rate is 8% a year. What is the company's cost of common equity of all of its equity comes from retained earnings? Do not round Intermediate calculations. Round your answer to two decima places. b. If the company issued new stock, it would incur a 14% flotation cost. What would be the cost of equity from new stock? Do not round Intermediate calculations. Round your answer to two decimal places. Grade New Sew & Co Continue without saving

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