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  3. question three compute the cost of internal equity

Question Three Compute the cost of internal equity (or retained earnings) when the current market...

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Question Three Compute the cost of internal equity (or retained earnings) when the current market price of the common stock is $12. The expected dividend this forthcoming year is $0.75 increasing thereafter at a 4.5% annual rate. The tax rate for this company is 25%. What is the cost before tax? What is the cost to the company after tax

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