Question: Question 15 (6 points) Jackson & Sons' current equilibrium stock price is $50. It is expected to pay a year-end dividend of $1.4 per share,

Question 15 (6 points) Jackson & Sons' current equilibrium stock price is $50. It is expected to pay a year-end dividend of $1.4 per share, which is expected to grow at a constant rate of 10 percent. New stock can be sold to the public at the current price, but a flotation cost of 12.5 percent would be incurred What would the cost of equity from new common stock be? 12.49% 7.20% 11.12% 13.20% 15.42% Previous Page Next Page Page 5 of 6

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