QUESTION 2 6.67 A company will issue new common stock to finance an expansion. The...
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QUESTION 2 6.67 A company will issue new common stock to finance an expansion. The existing common stock just paid a $1.25 dividend, and dividends are expected to grow at a constant rate 8% indefinitely The stock sells for $45, and flotation expenses of 6% of the selling price will be incurred on new shares. The beta of this company is 1.34. What is the cost of new common stock for this company? 08.10% 10.16% 12.22% 11.19% 09.13% 6.67 QUESTION 3 Click Save and Submit to save and submit Cliok Save All Answers to sazie all answer Save All Answers NE 0PW
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