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What is cost of new common equity

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Reference no: EM132200171

Mars Enterprise expected growth rate is 5 percent. The current price of its common stock is $55 per share. The most recent dividend paid was $3.25 per share. If new common stock is issued, the company will incur flotation cost equal to 7.00 percent. (a) what is the company's cost of retained earnings? (b) What is its cost of new common equity?

Reference no: EM132200171

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