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. 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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