
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Jarett & Sons's common stock currently trades at $32.00 a share. It is expected to pay an annual dividend of $1.00 a share at the end of the year (D1 = $1.00), and the constant growth rate is 6% a year.
A. What is the company's cost of common equity if all of its equity comes from
%
B. If the company issued new stock, it would incur a 19% flotation cost. What would be the
%
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