Compute the cost of the company retained earnings

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Reference no: EM1354513

Twister Corporation is expected to pay a dividend of $7 per share one year from now on its common stock, which has a current market price of $143. Twister's dividends are expected to grow at 13 percent.

a. compute the cost of the company's retained earnings

b. if the floatation cost per share of new stock is $4, calculate the cost of issuing new common stock.

 

Reference no: EM1354513

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