1. X Corp paid dividends to OS last year by 2.20 per share. The current market price of Ordinary Shares is 40 per share and investors expect that dividend to grow by 6% by next year. Cost to issue Ordinary Shares is 5% of market value. 
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3. What is the cost of new common stock?

Answer rating: 100% (QA)

To calculate the cost of new common stock we need to use the dividend ... View the full answer