Growth rate is expected to continue into the foreseeable

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A new common stock issue that paid a 1.80 dividend last year. the par value of the stock is $15, and earning per share have grown at a rate of 7 percent per year, this growth rate is expected to continue into the foreseeable future. the company maintains a constant dividend-earnings ratio of 30 percent. the price of this stock is now $27.50, but 5 percent floatation costs are anticipated

Reference no: EM13525080

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