Issue new common stock to finance an expansion

Assignment Help Financial Management

Reference no: EM131348239

Kelly Corporation will issue new common stock to finance an expansion. The existing common stock just paid a $0.95 dividend, and dividends are expected to grow at a constant rate of 3.35% indefinitely. The stock sells for $51, and flotation expenses of 4% of the selling price will be incurred on new shares. What is the cost of new common stock for kelly corp?

Reference no: EM131348239

Questions Cloud

Real estate for capital budgeting purposes : If a firm has the option of selling some raw land to another firm or utilizing it to build a new factory, then if the firm chose to build the factory how should it handle the lost opportunity to sell the real estate for capital budgeting purposes? Wh..

Consumption of digital media : Students are required to select a topic related to global, social, ethical, or legal issues with digital media. You will perform in-depth research and provide an explanation of how an issue associated with your selected topic relates to the consum..

Determine the mass flow rate of the refrigerant : Determine the mass flow rate of the refrigerant, The system's coefficient of performance, The total power required by the compressor.

Consider a six-month european put option on an index : Consider a six-month European put option on an index. The current index value is $2030, the strike price is $2090, the dividend yield is 2% per annum, and the continuously compounded risk-free interest rate is 6% per annum. The volatility of the inde..

Issue new common stock to finance an expansion : Kelly Corporation will issue new common stock to finance an expansion. The existing common stock just paid a $0.95 dividend, and dividends are expected to grow at a constant rate of 3.35% indefinitely. The stock sells for $51, and flotation expenses ..

Find the frequency and period : For each of the following alternating quantities determine the amplitude and r.m.s. value

What is fin world cost of preferred stock : Fin world has just offered preferred stock that pays $3.50 per share and was sold for $44. Fin world had to pay $2.15 paper share in floatation costs. What is fin world's cost of preferred stock?

Demand for real money balance : Assume that the demand for real money balance (M/P) is M/P=0.6Y-100i, where Y is national income and i is the nominal interest rate (in percent). The real interest rate r is fixed at 3 percent by the investment and saving functions. The expected i..

Bonds outstanding that are currently quoted at price : Green Roofing Materials has 7.5% bonds outstanding that are currently quoted at a price of $1,087 each. The bonds pay interest on December 1 and June 1. What is the cash price of this bond if today's date is May 1? There are 182 days from Dec. 1 to J..

User Account

All Pages