(Answered) Javits amp sons common stock currently trades at 30 a share

Accounting

Javits & Sons common stock currently trades at $30 a share. It is expected to pay an annual dividend of $3.00 a share at the end of the year (D1= $3.00) and the constant growth rate is 5% 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 were to issue new stock, it would incur a 10% flotation cost. What would the cost of equity from new stock be?

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