Canyon eaterys common stock which is currently selling for, Ask an Expert

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Canyon Eatery's common stock, which is currently selling for $50 per share, has a beta coefficient equal to 0.75. Canyon has paid a dividend equal to $6 per share since it has been in business, and expectations are that the same dividend will be paid forever. Canyon's investment banker charges 7 percent when new common stock is issued. What is Canyon's (a) cost of retained earnings and (b) cost of new common equity? Please show all work.

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Financial Management, Finance

Category:- Financial Management
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