Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using the constant growth valuation model Current market price per share Dividend growth rate Projected dividend per share next year Underpricing Per Share Flotation cost per share $31 00 6 $0 93 $1 00 $1 75

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Question: Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using

Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using the constant growth valuation model.

Current market price per share	Dividend growth rate	Projected dividend per share next year	Underpricing Per Share	Flotation cost per share
$31.00	6%	$0.93	$1.00	$1.75

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