Question: SHOW YOUR COMPLETE SOLUTION AND WRITE YOUR SOLUTION ON A PAPER. Problem 6: The Blue Dog Company has common stock outstanding that has a current

SHOW YOUR COMPLETE SOLUTION AND WRITE YOUR SOLUTION ON A PAPER. Problem 6: The Blue Dog Company has common stock outstanding that has a current price of P20 per share and a PO.3 dividend. Blue Dog's dividends are expected to grow at a rate of 3% per year, forever. Required:" What is the cost of new equity for Blue Dog using the dividend valuation model? What is the cost of the old equity? 2. Assuming that the dividend is for the current year, what is the cost of new equity for Blue Dog using the dividend valuation model? What is the cost of the old equity
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