Problemsun instruments expects to issue new stock at 34 a, Ask an Expert

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Problem:

Sun Instruments expects to issue new stock at $34 a share with estimated flotation costs of 7% of the market price. The company currently pays a $2.10 cash dividend and has a 6% growth rate.

Required:

Question: What are the costs of retained earnings and new common stock?

Note: Please provide through step by step calculations.

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Category:- Basic Finance
Reference No.:- M91148834

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