Toms Co's common stock has a market value of 37.51 per share and its next dividend is expected to be 2.04 per share. the co's dividends are expected to grow forever at a constant rate of 5.3% per year and the tax rate is 39% if the flotation cost for common stock are 5% what is the cos annual cost for external equity financing

Answer rating: 100% (QA)

To calculate the cost of external equity financing we can use the dividend discount model DDM Cost o... View the full answer