(Answered) A new common stock issue that paid a sar 400 dividend last

Finance

A new common stock issue that paid a SAR 4.00 dividend last year. The par value of the stock is SAR 13.00, and earnings per share have grown at a rate of 3 percent per year. This growth rated is expected to continue into the foreseeable future. The company maintains a constant dividend-earnings ratio of 24 percent. The price of this stock is now SAR 28.75, but 6 percent flotation costs (as a percent of market price) are anticipated. DATA Div last year 4.00 par value 13.00 growth rate 3% div/earnings 24% mrkt price 28.75 flotation costs 6% Cost =

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