This question is based on the following information: Pitts Company’s common stock is selling at P 82/share. Last year, the Dividends per share was P 4. The dividend is expected to grow at 25% yearly, Flotation cost is P 2/share. What is the cost of retained earnings? a. 31.10% b. 31.25% c. 32.25% d. 33.25% P 2/share. What is the cost of the new common stock
This question is based on the following information: Pitts Company’s common stock is selling at P 82/share. Last year, the Dividends per share was P 4. The dividend is expected to grow at 25% yearly, Flotation cost is P 2/share. What is the cost of retained earnings? a. 31.10% b. 31.25% c. 32.25% d. 33.25% P 2/share. What is the cost of the new common stock
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 5P
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This question is based on the following information: Pitts Company’s common stock is selling at P 82/share. Last year, the Dividends per share was P 4. The dividend is expected to grow at 25% yearly, Flotation cost is P 2/share.
- What is the cost of
retained earnings ?
a. 31.10%
b. 31.25%
c. 32.25%
d. 33.25% - P 2/share. What is the cost of the new common stock?
a. 31.25%
b. 32.25%
c. 33.25%
d. 34.25%
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