Question
Tesla is expected to pay an annual dividend of $2.38 one year from now. Dividends are expected to grow by 3% every year and
Tesla is expected to pay an annual dividend of $2.38 one year from now. Dividends are expected to grow by 3% every year and the current stock price is $188.5. Tesla is in the process of issuing new common stock, with flotation costs of 11% of the issue price. Part 1 What is the cost of new common stock? Attempt 1/5 for 10 pts.
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Step: 1
To calculate the cost of new common stock we need to consider the dividend growth rate the ...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
