Question: Tokyo Steels Common stock currently is selling for $56 per share. The most recent dividend paid to common stockholders was $2.40 and this dividend is

Tokyo Steels Common stock currently is selling for $56 per share. The most recent dividend paid to common stockholders was $2.40 and this dividend is expected to grow at a rate of 5% for as long as Tokyo is in business. If it issues new common stock Tokyo will incur floatation cost equal to 10%? What is the company's cost of retained earnings? What is its cost of new common equity?

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