Question: Question 25 (3.5 points) Costly Corporation is considering using equity financing. Currently, the firm's stock is selling for $29.00 per share. The firm's dividend for

 Question 25 (3.5 points) Costly Corporation is considering using equity financing.

Question 25 (3.5 points) Costly Corporation is considering using equity financing. Currently, the firm's stock is selling for $29.00 per share. The firm's dividend for next year is expected to be $5.30 with an annual growth rate of 5.0% thereafter indefinitely. If the firm issues new stock, the flotation costs would equal 15.0% of the stock's market value. The firm's marginal tax rate is 40%. What is the firm's cost of internal equity? 23.28% 26.50% 24.19% 27.58% O 21.94% Question 26 (3.5 points) Marginal Incorporated (MI) has determined that its before-tax cost of debt is 9.0%

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