Jarett amp sons common stock currently trades at 3000 a, Ask an Expert

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Jarett & son's common stock currently trades at $30.00 a share. it is expected to pay an annual divident of $1.00 a share a the end of the year(d1=1.00) and the constant growth rate is 4% a year

a) what is the company's cost of common equity if all of its equity comes from retained earnings?

b) if the company issued new stock, it would incur a 10% flotation cost. what would be the cost of equity from new stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92744200

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