Retained earnings versus new common stock?? Using the data for a firm shown in the...
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Retained earnings versus new common stock?? Using the data for a firm shown in the following? table, calculate the cost of retained earnings and the cost of new common stock using the? constant-growth valuation model.???
Current market price per share: $66.00
Dividend growth rate: 7?%
Projected dividend per share next year: $3.30
Underpricing per share: $2.50
Flotation cost per share:? ??$2.25
a. The cost of retained earnings is ? %? ?(Round to two decimal? places).
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