Sun Instruments expects to issue new stock at $36 a share with estimated flotation costs of 9 percent of the market price. The company currently pays a $1.70 cash dividend and has a 3 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places. Costs of retained earnings: % Cost of new common stock: %
Sun Instruments expects to issue new stock at $36 a share with estimated flotation costs of 9 percent of the market price. The company currently pays a $1.70 cash dividend and has a 3 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places. Costs of retained earnings: % Cost of new common stock: %
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 9PROB
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Sun Instruments expects to issue new stock at $36 a share with estimated flotation costs of 9 percent of the market price. The company currently pays a $1.70 cash dividend and has a 3 percent growth rate. What are the costs of
Costs of retained earnings: %
Cost of new common stock: %
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