Expected cash dividends are 250 the dividend yield is 6

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Expected cash dividends are $2.50, the dividend yield is 6%, flotation costs are 4% of price, and the growth rate is 3%. Compute cost of new common stock.

  • 9.00%
  • 9.25%
  • 9.18%
  • 9.44%

Reference no: EM13575359

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