The dividends and stock price of Mikey Company are expected to grow at 7 percent per year after this year. Mickey's common stock sells for P25 per share, its last dividend was P2.50 and the company will pay P2.675 at the end of the current year. Mickey should pay P2.50 flotation cost. What is the expected returns on retained earnings for Mickey Company? O 17.70 percent 18.45 percent 18.89 percent 19.72 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
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The dividends and stock price of Mikey Company are expected to grow at 7 percent
per year after this year. Mickey's common stock sells for P25 per share, its last
dividend was P2.50 and the company will pay P2.675 at the end of the current year.
Mickey should pay P2.50 flotation cost.
What is the expected returns on retained earnings for Mickey Company?
17.70 percent
O 18.45 percent
O 18.89 percent
19.72 percent
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Transcribed Image Text:The dividends and stock price of Mikey Company are expected to grow at 7 percent per year after this year. Mickey's common stock sells for P25 per share, its last dividend was P2.50 and the company will pay P2.675 at the end of the current year. Mickey should pay P2.50 flotation cost. What is the expected returns on retained earnings for Mickey Company? 17.70 percent O 18.45 percent O 18.89 percent 19.72 percent Next « Previous
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