Stock sells for 22.50 per share, expected dividend is 1.92 and its constant growth rate is 6%

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Stock sells for 22.50 per share, expected dividend is 1.92 and its constant growth rate is 6% new stock can be sold but a flotation cost of 8% would be incurred. how much would the cost of new stock exceed the cost of retained earnings?

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Jul 17, 2023 03:24 AM

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Stock sells for 22.50 per share, expected dividend is 1.92 and its constant growth rate is 6%

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To calculate the cost of new stock and the cost of retained earnings we need to consider the flotati... View the full answer

Principles of Finance

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