Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. royal mediterranean cruise lines common stock is s

royal mediterranean cruise lines common stock is selling for 45.69 per share. the last dividend was...

60.1K

Verified Solution

Question

Finance

royal mediterranean cruise lines common stock is selling for 45.69per share. the last dividend was 1.46, and dividends are expectedto grow at a 7% annual rate. flotation costs on the new stock salesare 12% of the selling price. what is the cost of royals new commonstock

Answer & Explanation Solved by verified expert
4.2 Ratings (510 Votes)
Solution The following formula is used to calculate cost of new common stock re D1 P 1 F g re D0 1 g P 1 F g Where re Cost of external equity D1    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

royal mediterranean cruise lines common stock is selling for 45.69per share. the last dividend was 1.46, and dividends are expectedto grow at a 7% annual rate. flotation costs on the new stock salesare 12% of the selling price. what is the cost of royals new commonstock

Other questions asked by students

Finance
1.2K views

Bayani Bakery's most recent FCF was $48 million; the FCF is expected to grow at a...

Civil Engineering
1.2K views

An equal-tangent crest vertical curve connects an initial grade of +2.5% and a final grade of...

Psychology
1.2K views

How would you define non-verbal communication? Make sure that your answer includes the three types of...

Physics
1.2K views

We talked about the Doppler Effect for sound waves. Electromagnetic waves exhibit the same type of...

Economics
1.2K views

PART 6: True or false and multiple-choice questions Question 16: True or false, firms in situation of...

Accounting
1.2K views

On August 1, 2017, Indigo Corporation issued $504,000, 8%, 10-year bonds at face value. Interest is...

Biology
1.2K views

hich of the following is considered a density dependent limiting factor O A B C...

Basic Math
1.2K views

Find the magnitude and direction of the vector 4 2 4 2 w Select the...

Basic Math
1.2K views

A certain forest covers an area of 2800 km. Suppose that each year this area...

Basic Math
1.2K views

Graph the solution of the system of linear inequalities.(3x-2y?6y?-5Use the graphing tool to graph the...

Calculus
1.2K views

The line has an equation of y = 2x intersects the curve y = 8x.Determine...

Finance
1.2K views

The Chief Finance Officer (CFO) of Adelpha Ltd, a UK-based manufacturer of small consumer goods,...