How would apply for capitalization of future dividends

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Question: Some successful firms in high-growth industries pay no dividends but reinvest all their earnings to finance future expansion. Does this imply that their cost of new common equity is low? How would you apply a capitalization of future dividends in estimating their cost of equity? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131750110

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